What got cheaper & costlier in March as CPI falls to 67-month-low of 3.34%?
India’s retail inflation, as measured by the Consumer Price Index (CPI), has fallen to a 67-month low of 3.34% in March, according to the data released by the Ministry of Statistics and Programme Implementation. This significant drop in inflation has brought relief to consumers, who have been facing rising prices in recent times. The decline in inflation is mainly attributed to a decrease in prices of essential food items, such as eggs, vegetables, and pulses.
Prices of eggs, vegetables, and pulses see significant declines
The prices of eggs, which were at an all-time high last year, saw a considerable decline of 14.3% in March compared to the same period last year. This is a welcome respite for consumers who had to pay a hefty sum for eggs due to the bird flu outbreak and subsequent shortage in supply. The prices of vegetables also saw a decline of 10.3% in March, with the prices of onions, potatoes, and tomatoes falling significantly.
The prices of pulses, which are a staple food item in India, also saw a decline of 8.4% in March. Pulses are a key source of protein for many Indians, and a decline in their prices will come as a relief to consumers who had to pay a premium for these essential items.
Spices, meat, fish, housing, recreation, and amusement see marginal declines
While the prices of eggs, vegetables, and pulses saw significant declines, other essential items like spices, meat, fish, housing, recreation, and amusement saw only marginal declines. The prices of spices, which are a key ingredient in many Indian dishes, saw a decline of 0.4% in March, while the prices of meat and fish saw a decline of 0.3% and 0.2% respectively.
The prices of housing, which includes rent and other expenses associated with owning or renting a home, saw a decline of 0.1% in March. The prices of recreation and amusement, which includes items like cinema tickets, sports equipment, and travel expenses, also saw a decline of 0.1% in March.
Fruit prices see significant jump
However, there are some essential items that saw a significant jump in prices in March. The prices of fruits, which are an essential part of a healthy diet, saw a significant increase of 15.1% in March. This is mainly due to the impact of unseasonal rainfall and other weather-related factors on fruit production.
Prices of cereals, milk, oil, sugar, confectionery, clothing, snacks, sweets, pan, tobacco, footwear, fuel, health, and education see marginal rises
While the prices of eggs, vegetables, and pulses saw significant declines, other essential items like cereals, milk, oil, sugar, confectionery, clothing, snacks, sweets, pan, tobacco, footwear, fuel, health, and education saw only marginal rises. The prices of cereals, which include items like rice, wheat, and maize, saw a rise of 0.5% in March, while the prices of milk, oil, sugar, confectionery, and clothing saw a rise of 0.3%, 0.2%, 0.2%, and 0.1% respectively.
The prices of snacks, sweets, pan, tobacco, footwear, fuel, health, and education also saw marginal rises in March, with the prices of snacks and sweets seeing a rise of 0.1% and 0.2% respectively.
Conclusion
India’s retail inflation has fallen to a 67-month low of 3.34% in March, bringing relief to consumers who had to face rising prices in recent times. The decline in inflation is mainly attributed to a decrease in prices of essential food items, such as eggs, vegetables, and pulses. While there are some essential items that saw a significant jump in prices, such as fruits, the overall decline in inflation is a welcome respite for consumers.
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