India's retail inflation hits 11-month low

India's retail inflation dipped to an 11-month low in April, led by deflation in fuel and light segment and softening pressures on clothing and footwear, pan, tobacco and intoxicants segments, but food and beverages inflation remained stubborn. Experts said continued uncertainty over food inflation dims the prospects of interest rate cuts for now.
Data by the National Statistical Office showed retail inflation, as measured by the consumer price index, rose an annual 4.8% in April, marginally slower than the 4.9% in March. Rural inflation was higher at 5.4% while urban was at 4.1%.
Inflation in the food and beverages group rose to 7.9% in April from 7.7% in March, led by higher prices in cereals, meat and fish, oils and fat and fruits. Inflation in the vegetables and pulses & products segment remained in double digits for 11 months in a row. Vegetables inflation rose an annual 27.8% in April, while pulses & products surged 16.8%.
Retail inflation had eased to a five-month low of 4.9% in March, slowing from 5.1% in Feb. It was led by marginally moderating food inflation. RBI governor Shaktikanta Das has said that food inflation continues to exhibit considerable volatility impeding the disinflation.