What Got Cheaper & Costlier in March as CPI Falls to 67-Month-Low of 3.34%?
The Consumer Price Index (CPI), which measures the average change in prices of a basket of goods and services, has fallen to a 67-month-low of 3.34% in March. This is a significant decline from the previous month’s rate of 5.05%. According to the latest data released by the Ministry of Statistics and Programme Implementation, the CPI fell for the fourth consecutive month in March. This downward trend is attributed to a decline in prices of essential commodities, including eggs, vegetables, and pulses.
Decline in Prices of Essential Commodities
The prices of eggs, which had been rising steadily over the past few months, saw a significant decline of 13.6% in March. Vegetables, which are a staple in most Indian households, also witnessed a decline of 12.4% in prices. Pulses, which include lentils and peas, saw a decline of 10.6% in prices. These declines in prices of essential commodities have helped to bring down the overall CPI.
Marginal Declines in Prices of Other Commodities
While prices of eggs, vegetables, and pulses saw significant declines, prices of other commodities saw marginal declines in March. Spices, meat, fish, and housing saw prices decline by 0.2% to 0.6%. Recreation and amusement also saw a marginal decline of 0.3%. However, it’s worth noting that prices of these commodities had been rising steadily over the past few months, so even these marginal declines are a welcome respite for consumers.
Fruit Prices See Sizeable Jump
On the other hand, prices of fruits saw a sizeable jump of 14.1% in March. This is likely due to a shortage of certain fruits, such as mangoes, which are seasonal and in high demand. However, it’s worth noting that the overall impact of this price hike is likely to be limited, as fruits are not a staple commodity in most Indian households.
Marginal Rises in Prices of Certain Commodities
While the overall CPI fell in March, prices of certain commodities saw marginal rises. Cereals, milk, oil, sugar, confectionery, clothing, snacks, sweets, pan, tobacco, footwear, fuel, and health and education saw prices rise by 0.1% to 1.1%. While these price rises may not be significant, they are still worth noting, especially for consumers who rely heavily on these commodities.
What Does This Mean for Consumers?
The decline in CPI to a 67-month-low of 3.34% is a welcome respite for consumers, who have been facing rising prices over the past few months. The decline in prices of essential commodities, such as eggs, vegetables, and pulses, is likely to benefit low- and middle-income households, who spend a significant portion of their income on these commodities. Additionally, the marginal declines in prices of other commodities, such as spices, meat, fish, and housing, are also likely to benefit consumers.
Conclusion
In conclusion, the CPI fell to a 67-month-low of 3.34% in March, driven by declines in prices of essential commodities, such as eggs, vegetables, and pulses. While prices of certain commodities, such as fruits and cereals, saw marginal rises, the overall impact of these price hikes is likely to be limited. The decline in CPI is a welcome respite for consumers, who have been facing rising prices over the past few months. As the economy continues to grow, it’s essential to monitor the CPI to ensure that prices remain stable and affordable for consumers.
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