New Delhi, May 13 (UNI) India’s retail inflation eased to a nearly six-year low of 3.16 per cent in April, driven by a sharp decline in food prices, particularly vegetables, pulses and meat. According to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, food inflation dropped to 1.78 per cent, the lowest since October 2021, from 2.69 per cent in March — a sharp decline of 91 basis points.

The headline inflation, measured by the Consumer Price Index (CPI), is now at its lowest level since July 2019. The sustained moderation in price pressures comes as a relief to policymakers and consumers alike, especially with core inflation — which excludes volatile food and fuel prices — remaining benign.

Inflation in the vegetable basket turned negative in April, contracting 6.55 per cent year-on-year, while prices of meat and fish fell by 1.02 per cent. Pulses inflation moderated to 16.84 per cent, though it remains elevated. On the other hand, cereals and products continued to register double-digit inflation at 8.63 per cent, and spices inflation stood at 11.4 per cent.

Rural inflation stood at 3.34 per cent, while urban inflation was marginally lower at 2.83 per cent, indicating a broad-based easing in price pressures across geographies.

The core inflation rate is estimated to be between 3.2 and 3.4 per cent, marking another month of subdued readings — a trend that could allow the Reserve Bank of India (RBI) to maintain its current monetary stance without the pressure of further rate hikes. The central bank has kept the repo rate unchanged at 6.50 per cent for seven consecutive policy meetings.

Analysts said the sharp disinflation in food categories may be temporary and subject to climatic and supply-side factors, but the broader cooling trend will offer breathing room to the RBI, especially as growth remains robust.

Looking ahead, the trajectory of inflation will depend heavily on the progress of the monsoon, government intervention in food supply management, and global commodity prices.

The data precedes the release of the Index of Industrial Production (IIP) numbers for March, which are expected later in the day.

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