(MENAFN- KNN India) New Delhi, May 25 (KNN) The
Finance Ministry announced that India's retail inflation rate has fallen to 4.83 per cent in April 2024, marking the lowest level in the past eleven months.
However, the ministry cautioned that ongoing geopolitical tensions have the potential to disrupt supply chains and drive up international commodity prices.
According to the ministry's monthly economic review, the moderation in inflation was driven by a dip in core inflation, which excludes food and fuel components. Core inflation reached a record low of 3.2 per cent in April, the lowest since January 2014.
The review cited declining prices for clothing, footwear, housing, household goods and services, health, education, recreation, amusement, transport, and communication as key contributors to the lower core inflation rate.
For the eighth consecutive month, prices in the fuel and light category remained in deflationary territory, benefiting from the government's decision to reduce the price of non-subsidised LPG cylinders by Rs 100 in March.
While acknowledging the positive impact of government initiatives and the forecast of a normal monsoon season on food production, the ministry highlighted the potential risks posed by geopolitical tensions.
"Ongoing geopolitical tensions could potentially drive up international commodity prices and disrupt supply chains," the review stated.
The government expects wheat prices to decline further due to the ongoing procurement process.
Edible oil prices also remained in deflationary territory, and the ministry noted softening price pressures across most essential commodities, assisted by administrative measures.
The report also pointed to favorable progress in the sowing of summer crops and a continued decline in milk inflation over the past year.
Sugar inflation saw a notable drop compared to the previous four months.
(KNN Bureau)
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