India Inflation Hits 18-Month Low Of 4.7%; Industrial Production Growth Slows

(RTTNews) - India's consumer price inflation eased more-than-expected in April to its lowest level in one-and-a-half years and remained below the Reserve Bank of India's upper threshold amid a slowdown in food prices, and industrial production expanded at a slower pace in March, data from the National Statistical Office showed on Friday.

The consumer price index, or CPI, climbed 4.70 percent year-over-year in April, which was slower than the 5.66 percent rise in March. Economists had forecast the inflation rate to drop to 4.80 percent.

In the same period last year, inflation was 7.79 percent.

Inflation returned within the RBI's tolerance band of 2-6 percent for the second straight month.

Nonetheless, the inflation rate was above the central bank's medium-term target of 4.0 percent.

The Monetary Policy Committee of RBI has projected CPI inflation at 5.2 percent for 2023-24.

Food price inflation moderated to 3.84 percent in April from 4.79 percent in the prior month, largely led by a 6.50 percent plunge in vegetable prices.

Prices for clothing and footwear rose 7.47 percent annually in April, and those for fuel and light grew 5.52 percent.

On a monthly basis, consumer prices moved up 0.51 percent in April, and food prices showed a similar kind of increase of 0.57 percent.

Separate official data showed that industrial production expanded 1.1 percent year-over-year in March, much slower than the 5.6 percent gain in February. Economists had forecast 3.3 percent growth.

Among the three main sectors, electricity production advanced the most, by 8.9 percent. This was followed by a 5.8 percent increase in mining production. Manufacturing output also logged a positive growth of 4.5 percent.

In the April to March period, total industrial production was 5.1 percent higher compared to the same period a year ago.