What got cheaper & costlier in March as CPI falls to 67-month-low of 3.34%?
In a significant development, India’s retail inflation fell to a 67-month-low of 3.34% in March, as per the latest data released by the Central Statistics Office (CSO). The Consumer Price Index (CPI) has been on a downward trend for the past few months, and the latest figure is a welcome respite for consumers who have been grappling with rising prices.
The decline in retail inflation is attributed to a sharp decline in prices of essential commodities such as eggs, vegetables, and pulses. These commodities saw significant declines in March, with prices of eggs dropping by 12.1%, vegetables by 11.7%, and pulses by 10.3%. The decline in prices of these essential commodities has had a ripple effect on the overall retail inflation, leading to a significant drop in the CPI.
In addition to eggs, vegetables, and pulses, prices of several other commodities also saw marginal declines in March. Spices, meat, fish, housing, recreation, and amusement saw prices drop by 1.8%, 1.5%, 1.3%, 1.1%, and 0.9%, respectively. The decline in prices of these commodities is expected to provide some relief to consumers who have been facing rising prices in recent months.
However, not all commodities saw prices drop in March. Fruit prices saw a significant jump, rising by 14.1% due to a decline in production and supply. The rise in fruit prices is expected to have a marginal impact on the overall retail inflation, but it is still a concern for consumers who rely on these commodities.
On the other hand, prices of several other commodities saw marginal rises in March. Cereals, milk, oil, sugar, confectionery, clothing, snacks, sweets, pan, tobacco, footwear, fuel, and health and education saw prices rise by 0.4%, 0.3%, 0.2%, 0.2%, 0.1%, 0.1%, 0.1%, 0.1%, 0.1%, 0.1%, and 0.1%, respectively. While these price increases are marginal, they are still expected to have an impact on the overall retail inflation in the coming months.
The decline in retail inflation is expected to have a positive impact on the economy, as it is likely to lead to an increase in consumer spending and investments. The fall in retail inflation is also expected to provide some relief to the Reserve Bank of India (RBI), which has been grappling with the challenge of managing inflation while also supporting economic growth.
In conclusion, the decline in retail inflation in March is a welcome development for consumers who have been facing rising prices in recent months. The decline in prices of essential commodities such as eggs, vegetables, and pulses is expected to provide some relief to consumers, while the marginal declines in prices of other commodities are also expected to have a positive impact. However, the rise in fruit prices and marginal rises in prices of other commodities are concerns that need to be monitored in the coming months.
