CPI Inflation falls to nine-month low of 4.85% in March

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CPI Inflation has fallen for third month in a row to 4.85 per cent in March 2024. Inflation has now fallen to nine-months low levels. Inflation in urban areas has been reported at lower levels than in rural areas in the month of March 2024. Rural inflation print came in at 5.45 per cent. While, urban inflation has corrected to 4.14 per cent. Inflation has remained lower than RBI’s upper limit of tolerance band of six per cent for last seven straight months now.

March inflation print has corrected on the back of slowdown in growth rate of food items, cut in LPG cylinder and petrol and diesel prices by the government. Correction in milk and fruit inflation too helped bring down the retail inflation to nine months low level in the concerned month.

LPG cylinder prices were cut by Rs 100 and petrol and diesel prices were reduced by Rs 2 per litre in the previous month. This kept the fuel and light inflation in negative territory in March as well which came in at (-) 3.24 per cent. Milk inflation fell to 3.38 per cent and fruit inflation fell to 3.07 per cent in March 2024.

While, pulses and products inflation, cereals and spices inflation continue to prevail at elevated levels. Pulses and products infation has remained a headache for the government as it continues to prevail at high levels since long time now. It came in at 17.71 per cent. While, spices inflation has also remained in double digits in last one year. In March 2024, CPI inflation print for spices came in at 11.40 per cent.

Cereals and products inflation after being a headache for government for quite a long time, had finally started to show correction off-late. It had continuously fallen since August 2023. Although, it increaed a bit in March 2024, and came in at 8.37 per cent.

Veggie prices continue to remain a concern for the government. In the month under consideration, vegatable inflation came in at very high levels of 28.34 per cent. In recently concluded MPC meet, the RBI governor, Shaktikanta Das had said that he was concerned on IMD’s prediction of severe heat waves in the June 2024 quarter due to which vegetable price could remain elevated.

While, food inflation came in at 7.68 per cent in March

Bad news for non-vegetarians:

Meat and fish inflation had largely remained muted in 2023. But since the beginning of the current year, meat and fish inflation has continued to increase. It increased for the third straight month in March 2024 to 6.36 per cent. Egg inflation too came in double digits of 10.33 per cent.