Editor's Pick | Inflation slows, but no relief on food bills

The Hindu’s Editorial [logo] Editor's Pick 13 April 2024 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]Open in browser [Mail icon]More newsletters Inflation slows, but no relief on food bills India’s retail inflation moderated to a 10-month low of 4.85% in March from 5.1% in February [but food inflation remained sticky at 8.52%]( little changed from the 8.66% recorded in the previous month as price rise accelerated in cereals and meat, while vegetables, pulses, spices and eggs remained in double-digit inflation. While inflation for urban consumers cooled significantly from 4.8% in February to 4.14% in March, rural consumers had it harder as they experienced a slightly higher inflation of 5.45% in March compared with 5.34% in the previous month. This trend was visible in the extent of food price rise as well, as it accelerated from 8.3% in February to 8.6% in March for rural India, while the food inflation for urban consumers dropped from 9.2% in February to 8.35% last month. On a month-on-month basis, there was no change in the Consumer Price Index but the food price index inched up about 0.2% and economists reckoned that the ongoing heatwave could spike food inflation in coming months. Even as crude oil prices are firming up and an inflation spike in the U.S. may delay hopes of interest rate cuts from the Federal Reserve, sticky food inflation at home could further dampen prospects of rate cuts from India’s central bank. While March’s inflation rate is still aloof from the bank’s stated 4% target, average retail price rise in the last quarter of 2023-24 has been 5.01%, in line with the 5% average projected by the Reserve Bank of India (RBI). The RBI, which last week called inflation the elephant in the room that needs to return to the forest for good, expects retail inflation to ease to an average 4.5% this year from the 5.4% clocked in 2023-24. The ongoing April to June quarter is, however, expected to see an average inflation of 4.9%, as per the RBI. Within the food basket, vegetables inflation cooled marginally from the seven-month high of 30.25% in February to 28.3% last month. A similar easing was recorded in pulses (up 17.7% in March from 18.5% in February), eggs (up 10.33% from 10.7%), and sugar (up 7.25% compared with 7.5% in February). However, the price rise in cereals spiked to 8.4% in March from 7.6% in the previous month, and rose to 6.4% for meat and fish, from 5.2% a month earlier. Spices inflation remained over double digits at 11.4%, moderating from 13.5% in February. “Food prices continue to be under pressure with cereals, vegetables, spices and pulses seeing high inflation and the present heatwave poses an upside risk,” said Bank of Baroda chief economist Madan Sabnavis. Although inflation in household goods and services, and health and education, eased slightly from February levels, personal care and effects prices surged at a faster pace of over 6% in March. [Arrow][Free the messenger: On the Julian Assange case]( [Arrow][Risky premise: On Asian Development Bank forecast, India’s GDP growth]( The Hindu’s Daily News Quiz The Himalayan mountain range comprises about 15,000 glaciers. It is often associated with a term. What is it? - Third pole - Second pole - North pole - Arctic pole To know the answer and to play the full quiz, [click here](. [Sign up for free]( Today’s Best Reads [[BJP’s goal is to have only one government: Chidambaram] BJP’s goal is to have only one government: Chidambaram]( [[CSDS-Lokniti 2024 pre-poll survey | Do voters think that present govt. should get another opportunity?] CSDS-Lokniti 2024 pre-poll survey | Do voters think that present govt. should get another opportunity?]( [[One-third of land conflicts are in constituencies where forest rights are key poll issue: report] One-third of land conflicts are in constituencies where forest rights are key poll issue: report]( [[‘Aadujeevitham’ director Blessy likely to stage protest as PVR Cinemas halt screening of Malayalam movies across India] ‘Aadujeevitham’ director Blessy likely to stage protest as PVR Cinemas halt screening of Malayalam movies across India]( Copyright© 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please [try here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails [go here](