Food and Jewellery Prices Push Retail Inflation Higher

India’s retail inflation edged up to 3.48 per cent in April on a year-on-year basis, marking the fourth consecutive monthly rise under the revised data series. The latest figure was slightly higher than the 3.4 per cent inflation recorded in March.

According to data released by the Ministry of Statistics and Programme Implementation, inflation in rural India increased to 3.74 per cent, while urban inflation rose marginally to 3.16 per cent.

Food inflation, measured through the All India Consumer Food Price Index, climbed to 4.2 per cent in April compared to 3.87 per cent in the previous month. The rise reflected increasing prices of several essential food items and commodities.

Despite volatility in global energy markets amid tensions in West Asia, overall domestic inflation remained within the tolerance band of the Reserve Bank of India.

Among the items witnessing the sharpest price increases were silver, gold, diamond and platinum jewellery, along with coconut, tomato and cauliflower. On the other hand, products such as potato, onion, motor cars and jeeps, peas, chickpeas and air conditioners recorded comparatively lower inflation levels.

Government data indicated that the latest increase in inflation was mainly driven by rising costs linked to personal care, social protection services, tobacco products, intoxicants, restaurants, and accommodation services.

Economists are likely to closely monitor food prices and global commodity trends in the coming months, especially as geopolitical developments continue to influence energy and supply chain costs worldwide.