CPI inflation falls below RBI's upper tolerance limit for first time in 14 months, at 4.7% in April
1 min read . Updated: 12 May 2023, 05:47 PM IST
PremiumInflation has been above RBI's upper tolerance limit of 6% since January 2022 which also pushed RBI to adopt an aggressive rate hike cycle from May 2022 to February 2023 policies.
India's consumer price index (CPI) inflation eases sharply to 4.7% in April 2023, coming under the RBI's upper tolerance limit of 6% for the first time in 14 months. This also signals further rate hike pauses or rate cuts from RBI's front with inflation below its upper target.
This is compared to 5.66% in March 2023. A year ago, in April month, CPI stood at 7.79%.
Inflation has been above RBI's upper tolerance limit of 6% since January 2022 which also pushed RBI to adopt an aggressive rate hike cycle from May 2022 to February 2023 policies.
The easing in CPI comes due to a steep decline in food inflation. The consumer food price index (CFPI) comes at 3.84% in April 2023 versus 8.31% in the same month a year ago. In March 2023, food inflation was at 4.79%.
As per the Ministry of Statistics & Programme Implementation data, the price data was collected from selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of the Field Operations Division of NSO, MoSPI on a weekly roster.
In April 2023, NSO collected prices from 99.83% of villages and 98.56% of urban Markets while the Market-wise prices reported therein were 89.90% for rural and 93.14% for urban.