Consumer price inflation drops to 9.39% in April

Consumer price inflation drops to 9.39% in April
New Delhi: Falling for the second straight month, retail inflation declined sharply to 9.39 percent in April due to easing of prices of vegetables, edible oil and protein-based items.

The Consumer Price Index (CPI) based inflation stood at 10.39 percent in March.

The prices in the vegetables basket eased to 5.43 percent in April from 12.16 percent in March.

Inflation in protein-based items -- egg, meat and fish -- stood at 13.60 percent during the month. In oils and fats segment, it was 7.52 percent.

The overall food and beverages segment saw an inflation of 10.61 percent in April as against 12.42 percent in March.

Among all the constituents that make the CPI, cereals recorded the highest inflation of 16.65 percent in April, according to data released Monday.

Besides, inflation in pulses stood at 10.91 percent and in sugar it was 10.49 percent on an annual basis.

The rate of price rise in clothing and footwear segment stood at 10.22 percent during the month.

In urban areas, retail inflation declined to 9.73 percent in April from 10.38 percent in March. The CPI for rural population fell to 9.16 percent during the reported month from 10.33 percent in March.

The CPI stood at 10.91 percent in February, 2013.

The data for wholesale price index-based inflation is expected tomorrow. The March WPI eased to a three-year low of 5.96 percent, but was still higher than RBI's comfort level.

In order to accelerate economic growth, the Reserve Bank of India (RBI) earlier this month cut key interest rates by 0.25 percent.

"Although headline WPI inflation has eased by March, 2013 to come close to the Reserve Bank's tolerance threshold, it is important to note that food price pressures persist and supply constraints are endemic, which could lead to a generalisation of inflation...," the RBI had said.

PTI