Retail Inflation Eases To 4.29% In April On Decline In Food Prices

Retail Inflation in India: The retail inflation eased to 4.29 per cent in April 2021, amid decline in food prices, according to government data released on Wednesday

Retail inflation eased to 4.29 per cent in April 2021, owing to a drop in food prices, government data showed on Friday. The inflation rate was slightly higher than a poll conducted by news agency Reuters last week, which estimated that the retail inflation eased 4.20 per cent in April from March's four-month high of 5.52 per cent. The food inflation — or the inflation in the prices of food items dropped from 4.87 per cent in March to 2.02 per cent in April. The Reuters poll conducted with more than 50 economists, predicted the retail inflation in April just above the Reserve Bank of India's four per cent mid-point target . (Also Read: Benign Food Prices Likely Dragged Retail Inflation To 3-Month Low In April: Poll )The retail inflation easing to 4.29 per cent in April is well within the Reserve Bank of India's comfort zone of two per cent - six per cent, for the fifth straight month. The central bank tracks the retail inflation - or the rate of increase in consumer prices as determined by the Consumer Price Index or CPI.  The minutes of the RBI's Monetary Policy Committee's April meeting showed that the members raised concerns about the upside risks to inflation, and raised the inflation projection for the first half of this fiscal year to 5.2 per cent. However, the central bank kept the repo rate at a record low of four per cent, saying it would ensure ample liquidity.   The Monetary Policy Committee led by the RBI Governor Shaktikanta Das, expected the gross domestic product (GDP) growth to be at 10.5 per cent for the current fiscal year 2021-22. (Also Read: RBI Monetary Policy Highlights: Repo Rate Steady, Growth Projection Retained At 10.5% )