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India’s retail inflation eases to 18 month low of 4.7%

May 15, 2023

India’s retail inflation eases to 18 month low of 4.7%
India’s retail inflation in the month of April eased to an 18-month low of 4.70 per cent, data released by the National Statistical Office (NSO) on Friday showed. At 4.70, the consumer price index (CPI) in April remained below the upper threshold of the Reserve Bank of India’s medium-term 4+/- 2 percent target.

The country’s headline inflation remained within the tolerance range of the RBI for the second consecutive month. In March, India’s headline inflation stood at 5.66 per cent.
 
The consumer food price index (CFPI) eased to 3.84 per cent in April, as against 4.79 per cent in March.
 
Meanwhile, the rural inflation in April stood at 4.68 per cent, and the urban inflation came at 4.85 per cent.
 
In a bid to keep inflation under the tolerance band, the RBI since last year May has hiked the key lending rate repo rate by 250 basis points. The RBI’s repo rate currently stands at 6.50 per cent.
 
India’s industrial output in March grew 1.1 per cent, the NSO stated in separately released data. Factory output measured in terms of the Index of Industrial Production (IIP) grew 2.2 per cent in March last year.
 
The manufacturing sector’s output increased by 0.5 per cent in March while the mining output increased 6.8 per cent in the same month, the data showed.
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