CPI inflation rose to 2.92% in April 2019; food inflation increased by 1.03%

Inflation: India's Consumer Price Index (CPI) or retail inflation rose to 2.92% in April 2019, compared to 2.86% in the previous month. However, the latest number was still lower compared to 4.58% recorded in the same month of previous year. Meanwhile, consumer food price index (CFPI) witnessed a rate of 1.10% compared to 0.30% in March 2019 and 2.80% in April 2018.

On monthly basis, CPI inflation has risen by 0.50%, whereas food inflation has increased by 1.03%. It was urban region where inflation rate saw uptick. 

Inflation rate for food and beverages indicator came in at 1.38% in April 2019. Meantime, Pan, tobacco and intoxicants saw rate of 4.27%, clothing & footwear was at 2.01%. 

Housing inflation came in at 4.76%, while fuel and light inflation rate stood at 2.56% during April month. 

source: tradingeconomics.com

Additionally, a miscellaneous indicator which includes data of household goods and services, heath, transport and communication, transport and communication, education and personal care items was at 5.10%. 

On the latest CPI numbers, Rajni Thakur, Economist at RBL Bank said, "CPI inflation at 2.92% is in the expected range and moving closer to the inflation trajectory laid out by RBI’s forecast. Lower than expected pick up in food prices leads us to believe that headline inflation will likely remain below the Central Bank’s target well into H2 FY 20 as well, thereby providing additional space to tackle renewed growth concerns. The case for further rate cuts along with additional liquidity measures thus just got stronger.”

RBI has already followed two significant rate cuts in monetary policy. Currently, policy repo rate stands at 6%.

In its April 2019 policy, RBI revised CPI inflation target lower to .4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced.