(Reuters) -India’s annual retail inflation slowed to a near six-year-low of 3.16% in April, as food prices rose at a slower pace, government data showed on Tuesday.
Inflation was below economists’ estimate of 3.27% in a Reuters poll.
Food inflation eased to 1.78% in April from 2.69% in the previous month. Vegetable prices fell 11% year-on-year, compared to a 7.04 % fall in March.
COMMENTARY:
SAKSHI GUPTA, PRINCIPAL ECONOMIST, HDFC BANK, GURUGRAM
“Inflation inched down to 3.16% in April on the back of a continuous broad-based drop in food prices, including of vegetables, cereals and pulses. The CPI print today sets the stage for another rate cut by the RBI (Reserve Bank of India) in its June meeting, of 25 basis points.”
“Looking ahead, inflation is expected to remain close to 3% over the coming two months. The expectation of an above-normal monsoon and low commodity prices bodes well for the inflation trajectory through the year. We expect inflation to average at 3.7% in fiscal 2026.”
RADHIKA RAO, SENIOR ECONOMIST, DBS BANK, SINGAPORE
“Along our expectations, April inflation remained below 4% for a third successive month, slowing from March’s 3.4% to 3.2% year on year.”
“Even as food perishables fell by a lesser extent than in March amidst a shift in weather conditions, the sequential momentum was better contained than last year. A pullback in global energy prices and a firmer currency kept imported pressures in check. We don’t expect any spillover risk to inflation from recent geopolitical developments.”
(Reporting by Hritam Mukherjee and Kashish Tandon in Bengaluru; Compiled by Savio D’Souza)
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