What Got Cheaper & Costlier in March as CPI Falls to 67-Month-Low of 3.34%?
In a welcome respite for consumers, India’s retail inflation has fallen to a 67-month-low of 3.34% in March, as announced by the Ministry of Statistics and Programme Implementation (MoSPI). This significant decline in Consumer Price Index (CPI) is a result of a combination of factors, including a sharp decline in prices of essential commodities like eggs, vegetables, and pulses.
According to the latest data released by the MoSPI, prices of eggs, vegetables, and pulses saw a considerable decline in March, with eggs becoming 12.8% cheaper, vegetables 6.4% cheaper, and pulses 5.4% cheaper compared to the same period last year. This is a significant relief for consumers, especially those in rural areas who rely heavily on these staples for their daily needs.
In addition to these essential commodities, prices of spices, meat, fish, housing, recreation, and amusement also saw marginal declines in March. This means that consumers can expect to pay less for these items, which is likely to put more money in their pockets and boost consumer spending.
However, not all commodities saw price declines. Fruit prices, for instance, saw a sizeable jump of 14.2% in March, which is likely to impact consumers who rely on fresh fruits for their daily nutrition. Similarly, prices of cereals, milk, oil, sugar, confectionery, clothing, snacks, sweets, pan, tobacco, footwear, fuel, health, and education saw marginal rises, which may not be as welcome news for consumers.
So, what are the key takeaways from the March CPI data? Let’s break it down:
What Got Cheaper:
- Eggs: 12.8% cheaper
- Vegetables: 6.4% cheaper
- Pulses: 5.4% cheaper
- Spices: Marginally cheaper
- Meat, fish: Marginally cheaper
- Housing: Marginally cheaper
- Recreation and amusement: Marginally cheaper
What Got Costlier:
- Fruits: 14.2% more expensive
- Cereals: Marginally more expensive
- Milk: Marginally more expensive
- Oil: Marginally more expensive
- Sugar: Marginally more expensive
- Confectionery: Marginally more expensive
- Clothing: Marginally more expensive
- Snacks: Marginally more expensive
- Sweets: Marginally more expensive
- Pan: Marginally more expensive
- Tobacco: Marginally more expensive
- Footwear: Marginally more expensive
- Fuel: Marginally more expensive
- Health: Marginally more expensive
- Education: Marginally more expensive
The decline in retail inflation is likely to have a positive impact on the economy, as it can lead to increased consumer spending and investment. Additionally, the Reserve Bank of India (RBI) may also consider cutting interest rates in the future, which can further boost economic growth.
In conclusion, the March CPI data is a welcome respite for consumers, who can expect to pay less for essential commodities like eggs, vegetables, and pulses. While some commodities saw price increases, the overall decline in retail inflation is a positive sign for the Indian economy. As the government continues to implement policies aimed at stimulating economic growth, it will be interesting to see how these developments impact consumer spending and overall economic activity.
Source:
https://pib.gov.in/PressReleseDetail.aspx
Note: The article is based on the official data released by the Ministry of Statistics and Programme Implementation (MoSPI) and is intended to provide a general overview of the CPI data for March.
