BANKING AND ECONOMY
India's retail inflation surged to 7.79% - the highest in the last eight years - in the month of April. This inflation raised due to the higher edible oil & fuel prices across the country.
The data was released by the Ministry of Statistics and Programme Implementation. Retail inflation tracked by the Consumer Price Index (CPI) measures changes in prices from a retail buyer's perspective.
The headline retail inflation has now remained above the Reserve Bank of India’s 6% upper tolerance level for the fourth consecutive month. The Reserve Bank has been mandated by the Centre to keep the retail inflation between 2% and 6%.
The recorded retail inflation was higher than 6.95% in March and 4.23% a year ago. Previously the retail inflation reached the highest level at 8.33% in May 2014.
In April month, the rural and urban inflation rose to 8.38% and 7.09% respectively. The rural inflation surged from 7.66% in March and the urban inflation surged from 6.12% in March of this year. Inflation in the food basket rose to 8.38% in April from 7.68% in the preceding month and 1.96% in the year-ago month.
The core inflation stood at 6.8% in April from 6.6% in March 2022. Core Inflation refers to changes in the prices of products and services, excluding those in the food and energy sectors.
In the last Monetary Policy Committee meeting, the RBI had hiked rates by 40 bps for the first time since August 2018. With this, the Repo rate was fixed at 4.40%.