What Got Cheaper & Costlier in March as CPI Falls to 67-Month-Low of 3.34%?
As the Indian economy navigates through the ongoing global economic uncertainty, the country’s retail inflation has finally shown signs of slowing down. According to the latest data released by the Ministry of Statistics and Programme Implementation, the Consumer Price Index (CPI) fell to a 67-month-low of 3.34% in March. This significant decline in retail inflation is a welcome relief for consumers, as it means that their purchasing power has increased. But what exactly got cheaper and costlier in March? Let’s dive into the details.
The Fall in Retail Inflation
The CPI is a key indicator of inflation, which measures the average change in prices of a basket of goods and services consumed by households. The 3.34% CPI in March is a significant drop from the 5.03% recorded in February. This decline is attributed to a range of factors, including a decrease in prices of essential commodities like eggs, vegetables, and pulses.
What Got Cheaper?
Several food items saw a decline in prices in March, providing a respite to consumers. Some of the key items that got cheaper include:
- Eggs: Prices of eggs fell by 2.64% in March, making them more affordable for consumers.
- Vegetables: The prices of vegetables, including potatoes, onions, and tomatoes, decreased by 2.14% in March.
- Pulses: Prices of pulses, such as chana dal and urad dal, fell by 1.83% in March.
- Spices: Prices of spices, including turmeric, coriander, and cumin, saw a marginal decline of 0.35% in March.
- Meat, Fish, and Housing: Prices of meat, fish, and housing saw a marginal decline of 0.21%, 0.13%, and 0.09%, respectively, in March.
What Got Costlier?
While several food items saw a decline in prices, some items saw a marginal increase in prices. Some of the key items that got costlier include:
- Fruits: Prices of fruits, including bananas, apples, and oranges, saw a sizeable jump of 2.41% in March.
- Cereals: Prices of cereals, including wheat and rice, saw a marginal increase of 0.15% in March.
- Milk: Prices of milk saw a marginal increase of 0.12% in March.
- Oil: Prices of oil saw a marginal increase of 0.09% in March.
- Sugar: Prices of sugar saw a marginal increase of 0.07% in March.
- Confectionery: Prices of confectionery items, including chocolates and biscuits, saw a marginal increase of 0.06% in March.
- Clothing: Prices of clothing saw a marginal increase of 0.05% in March.
- Snacks: Prices of snacks, including chips and crackers, saw a marginal increase of 0.04% in March.
- Sweets: Prices of sweets saw a marginal increase of 0.03% in March.
- Pan and Tobacco: Prices of pan and tobacco saw a marginal increase of 0.02% in March.
- Footwear: Prices of footwear saw a marginal increase of 0.01% in March.
- Fuel: Prices of fuel saw a marginal increase of 0.01% in March.
- Health and Education: Prices of health and education services saw a marginal increase of 0.01% in March.
Conclusion
The decline in retail inflation to a 67-month-low of 3.34% in March is a welcome relief for consumers. The significant decline in prices of essential commodities like eggs, vegetables, and pulses has increased the purchasing power of consumers. While some items saw a marginal increase in prices, the overall decline in inflation is a positive sign for the Indian economy. As the economy continues to navigate through the ongoing global economic uncertainty, it will be interesting to see how retail inflation evolves in the coming months.
