NEW DELHI: Retail food inflation eased for the six consecutive months to 1.78%% in April compared to 2.69% in March, as prices of vegetables, pulses, meat, fish and spices declined with arrivals of winter harvest.
The consumer food price index (CFPI) declined by 0.153% sequentially last month compared to March. In April last year, the food inflation rate was as high as 8.7%.
The food inflation rate for April 2025 is the lowest since October 2021, when it was reported at 0.85%.
The inflation in the vegetable category declined sharply by 10.98% last month, compared to a decline of 7.04% in March. However, edible oil and fruit inflation remained high at 17.42% and 13.8% respectively last month.
“Food inflation came down mainly due to lower inflation for vegetables and inflation would likely be low in May and June too due to the base effect.” Madan Sabnavis, Chief Economist, Bank of Baroda, said.
Overall cereal inflation in April was 5.35% and had been in single digits for the past several months because of softening of rice prices due to bumper harvest.
However inflation in wheat last month was 7.61% against a price rise of 9% in March on year.
Inflation in mustard oil and refined oil were 19.6% and 23.75% respectively last month on year because of the rise in global prices. India imports about 58% of its edible oil consumption.
Inflation in pulses declined by 5.23% last month for third successive months on the prospects of robust kharif as well as rabi harvest. Inflation in pulses were as high as 113% in August,2024.
Retail inflation in pulses have been in double digits since June, 2023 because of lower output of key varieties of pulses like chana, tur and urad.
However the gram split variety of pulses reported an inflation of 7.6% last month while in March the price rise was 10.4% on year. The price rise in arhar was in the negative zone (- 9.84%) last month because of a high base effect as fall in prices due to a record harvest after two years.
Stating that the vegetable index dipping further, and compressing the food inflation, Aditi Nayar, Chief Economist, ICRA said “the recent rise in temperatures in North India and un-seasonal rainfall in parts of peninsular India may cause a spike in vegetable prices in the second half of May,”.
Inflation in the meat and fish category declined by 0.35% last month. Chicken declined by 6.78% in April. Egg prices rose by 0.83% last month on year.
Inflation in spices continues to decline since September last year as it declined by 3.4% last month on year. Jeera prices declined by 20.79% on year.
Source: The Financial Express
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