According to government data released on Wednesday, retail inflation slowed to 4.29 percent in April from 5.52 percent in March, owing primarily to lower food prices.
When determining monetary policy, the Reserve Bank primarily considers retail inflation as measured by the Consumer Price Index (CPI).
According to data released by the Ministry of Statistics and Programme Implementation, food basket inflation was 2.02% in April, down from 4.87 per cent the previous month.
According to Aditi Nayar, Chief Economist at ICRA, the CPI inflation dipped to a three-month low in April 2021, despite printing slightly higher than forecasts, due to the high base caused by supply disruptions during the nationwide lockdown in April 2020.
Overall, she said, the current localised constraints tend to have had only a minor effect on prices in April 2021.