Retail inflation surged to a six-month high of 2.92 per cent in April due to rise in prices of food items from abnormally low levels, said the data released by the Central Statistics Office (CSO). The inflation based on Consumer Price Index (CPI) stood at 2.86 per cent in March and 4.58 per cent in April 2018, it added. A Bloomberg poll of 39 analysts and economists had estimated the inflation at 2.99 per cent for the month under review. The retail inflation data is analysed by the Reserve Bank of India (RBI) while drafting the monetary policy. The central bank keeps 4 per cent as the medium-term inflation target and the latest number despite being on a higher side marginally remains below the target. The April CPI food price inflation shoot up at 1.1 per cent as against 0.30 per cent in March, the data showed.
The vegetable prices rose at 2.87 per cent as against 1.49 per cent in March. The CPI housing inflation for April was recorded at 4.76 per cent as against 4.93 per cent in March, it added. The rural inflation was at 1.87 per cent compared to 1.80 per cent in March, the data revealed. The fuel and light inflation stood at 2.5 per cent compared to 2.42 per cent in March.
The retail inflation may have remained low in the last five fiscals, it may climb in FY19, a CRISIL report said. The retail inflation for fiscal 2019 may rise to 4 per cent this fiscal from 3.4 per cent in fiscal 2019. The food inflation is expected to climb to 3 per cent from abnormal low of 0.1 per cent. The surge in food prices may generally remain subdued owing to well-distributed monsoon,it added.