India: Inflation drops to lowest level since October 2021 in April
Inflation eased to 4.7% in April, following March’s 5.7%. April’s result marked the weakest inflation rate since October 2021. Looking at the details of the release, prices for food and beverages grew at a more moderate rate in April, as did prices for fuel and light.
Accordingly, the trend pointed down, with annual average inflation coming in at 6.4% in April (March: 6.7%).
Finally, consumer prices increased 0.51% in April over the previous month, accelerating from the 0.23% increase logged in March. April’s figure marked the highest reading since October 2022.
Looking ahead, our panelists expect inflation to continue declining this year on a tougher base effect, weakening economic activity and cooling commodity prices. Key factors to watch include this season’s wheat crop, monetary policy, currency fluctuations, the Russia-Ukraine grain deal and changes in export controls for key agricultural commodities.