India CPI Inflation Rises To 4.58% In April

Gold Silver Reports (GSR) – The index of consumer price inflation stood at 4.58 percent in April, overturning a three month slide from its peak, according to data released by the Central Statistics Office. Economists polled Expected CPI inflation at 4.41 percent. Inflation stood at 4.28 percent in March, and 4.4 percent in February.                 

India CPI Inflation Rises To 4.58% In April — India’s retail inflation rose in April, in line with the central bank’s expectation that prices would continue to increase during the first half of the financial year 2018-19.                      

Wholesale prices in April also touched a four-month high due to rising crude oil and food prices.

Two members on India’s monetary policy committee – RBI deputy governors Viral Acharya and Michael Patra – are leaning towards a hawkish policy stance to rein in inflation within the committee’s 4(+/-2) percent band. Acharya and Patra flagged off risks from core inflation that hit a 43-month in March.

Acharya had pointed out that prices had softened in the first three months of 2018 due to the seasonality in vegetable prices but that’s just “largely noise” from an interest-rate setting perspective, according to his statement in the minutes of the MPC’s April meeting. What was of greater concern, he had added, was the sticky core inflation “given its persistence”.

This is the last inflation reading that the six-member group will consider before its meeting in June.

Inflation Internals

✅ Food price inflation remained unchanged at 2.8 percent.

✅ Prices of pulses and product fell for the seventh straight month to 12.35 percent in April.

✅ Fuel and light inflation stood at 5.24 percent compared to 5.7 percent in March.

✅ Housing inflation stood at 8.5 percent compared to 8.3 percent in March.

✅ Clothing and footwear inflation was at 5.11 percent compared to 4.9 percent in March.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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