Retail inflation rises to eight-year high in April

On Annual basis, retail inflation increased to an eight-year high of 7.79 percent in the month of April, One of the major reasons behind this is the sky-high prices of food, remaining above the upper tolerance level of India’s Central Bank for the fourth month in a row.

This year, in the month of March, inflation based on the Consumer Price Index (CPI) was 6.95 percent and 4.23 percent in April 2021. Inflation in the food increased to 8.38 percent in April from 7.68 percent in the month prior to it and 1.96 percent in the year-ago month.

The Reserve Bank of India has been mandated by the government to make sure that the inflation remains at 4 percent with a margin of 2 percent on either side. However, retail inflation has remained above 6 percent since the start of 2022. 

Following, the off-cycle Monetary Policy Committee (MPC) meeting of RBI, Shaktikanta Das, Governor of the Reserve Bank of India had informed that the adverse effects of the uncommon high global food prices due to the current geopolitical situation are reflected in the domestic market as well, and with time inflationary pressures are likely to remain.