India’s annual retail inflation touched a six-month high in April to 2.92% compared with 2.86% in March, said the data released by the Central Statistics Office (CSO).
Vegetable price inflation which turned positive last month grew 2.87% in April, while overall food and beverages inflation stood at 1.38% during the month, the government data added. The inflation in the food basket was 1.1% in April, up from 0.3% in March.
“CPI inflation at 2.92% is in the expected range and moving closer to the inflation trajectory laid out by RBI’s forecast. Lower than expected pick up in food prices leads us to believe that headline inflation will likely remain below the Central Bank’s target well into H2FY20 as well, thereby providing additional space to tackle renewed growth concerns. The case for further rate cuts along with additional liquidity measures thus just got stronger,” Rajni Thakur, Economist, RBL Bank said.