Consumer price inflation eases to 2.99% in April

Consumer price inflation based on the consumer price index eased to levels around 2.99 per cent in April, down from 3.89 per cent in March and 5.47 per cent in April the year before, helped by smaller rises in food prices.

But, with the onset of monsoon in mid-summer an expected rebound in the prices of vegetables and other essentials could still push up consumer prices, say experts, leaving no manoeuvring room for the Reserve Bank of India on interest rates.

Consumer price inflation for the rural areas stood at 3.02 per cent in April 2017 against 3.75 per cent in March and 6.17 per cent in April 2016.

Consumer price inflation for the urban areas stood at 3.03 per cent in April 2017 against 3.96 per cent in March and 4.68 per cent in April 2016.

Food price inflation stood at 0.61 per cent in April 2017 against 2.01 per cent in March and 6.40 per cent in April last year.

Food price inflation for rural areas stood at 0.69 per cent in April 2017 against 1.85 per cent in March and 6.66 per cent in April 2016.

Food price inflation for urban areas stood at 0.46 per cent in April 2017 against 2.42 per cent in March and 5.97 per cent in April last year.

RBI's Monetary Policy Committee (MPC), which has a mid-term inflation target of 4 per cent, is not convinced of an easing of inflation as most members at the last meeting expressed concern over upside risks to core inflation.

Economists expect the central bank to keep its policy rate unchanged this year.