• Source:JND
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Retail inflation eased to a near six-year low of 3.16 per cent in April, mainly due to falling prices of vegetables, fruits, pulses and other protein-rich items, leaving ample scope for the Reserve Bank to go for another rate cut in its June monetary policy review. Consumer Price Index (CPI)-based inflation was 3.34 per cent in March and 4.83 per cent in April 2024. It was 3.15 per cent in July 2019. NSO data showed a sharp decline of 91 basis points in food inflation in April 2025 compared to March 2025. Food inflation in April 2025 was the lowest since October 2021.

Food inflation stood at 1.78 per cent in April, down from 2.69 per cent in the previous month and 8.7 per cent in the previous month, data released by the National Statistics Office (NSO) on Tuesday showed. The Reserve Bank is tasked with ensuring that inflation remains at 4 per cent, with a margin of 2 per cent on either side. As the price situation has improved, the Reserve Bank has cut the key interest rate by 50 basis points in two tranches (February and April).

The central bank has projected CPI inflation at 4 per cent for the financial year 2025-26. It expects it to be 3.6 per cent in the first quarter, 3.9 per cent in the second quarter, 3.8 per cent in the third quarter and 4.4 per cent in the fourth quarter.

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"The significant decline in headline inflation and food inflation during the month of April 2025 is mainly attributed to decline in inflation of vegetables, pulses and products, fruits, meat and fish, personal care and effects and cereals and products," NSO said.

On an annualized basis, inflation of potato (12.7 per cent), tomato (33.21 per cent), chicken (6.78 per cent) arhar (14.27 per cent), cumin (20.79 per cent) during April.

In April, soybean oil inflation was 19.6 percent, refined oil (sunflower, soybean) 23.75 percent, apples 17 percent, and onions 2.94 percent. Rural inflation will be 2.92 per cent in April 2025 as against 3.25 per cent in the previous month. Urban inflation declined slightly from 3.43 per cent in March 2025 to 3.36 per cent in April. Kerala recorded the highest inflation at 5.94 per cent while Telangana recorded the lowest inflation at 1.26 per cent.

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(With Inputs from PTI)