India's consumer price inflation down at 5.66% in March
14 Apr 2023
Consumer price inflation in the country, based on the consumer price index, declined to 5.66 per cent in March 2023 from 6.44 per cent in February and 6.95 per cent in March 2022, bringing the inflation level closer to the Reserve Bank’s tolerance level, as supply strains eased.
Data released by the Central Statistics Office (CSO) showed that consumer price inflation continued to show volatility at the close of the 2022-23 financial year as well. It hit a high of 5.52 per cent in March 2022 and showed a downward trend in the succeeding month only to climb up to 6.30 per cent in May 2021. However, there has been a steady trend since June during the financial year.
Consumer price inflation for rural areas stood at 5.51 per cent in March 2023 against 6.72 per cent in February and 7.66 per cent in March 2022, while the inflation rate for urban consumers stood at 5.89 per cent in March 2023 against 6.10 per cent in February and 6.12 per cent in March 2022.
Overall food price inflation rate declined to 4.82 per cent in March 2023 from 5.95 per cent in February and 7.68 per cent in March 2022.
Food price inflation for rural areas stood at 4.66 per cent in March 2023 against 6.60 per cent in February and 8.04 per cent in March 2022 while food price inflation rate for urban consumers stood at 4.82 per cent in March 2023 against 5.09 per cent in February and 7.04 per cent in March 2022.
While food prices have moderated to some extent, the rising trajectory of global crude prices and a broad-based surge in international commodity prices and logistics costs have combined to impact core prices, although weak demand conditions may temper the pass-through to consumer inflation to some extent.