Ghar Kharcha: Inflation May Be At 11-Month Low, But Household Expenses Aren't
Though retail inflation has declined but the cost of running a household did not improve significantly due to stubborn prices of essential food items.
Inflation is easing... but is it really good news?
India's retail inflation dropped to an 11-month low of 4.83% in April from 4.85% in March, as per government data released on Monday. However, the average household budget did not get much relief from this slight dip.
The decrease in inflation is minimal, as rising food prices offset the decline in fuel inflation. Food prices continue to be a sore point for consumers, with food and beverage inflation climbing to 7.87% in April compared to 7.68% in the previous month. Fuel prices dropped by 4.24%, slightly more than the 3.2% decline in March.
In terms of month-on-month change, food and beverage costs rose by 0.6% in April.
How about the cost of a thali? Potatoes—a kitchen staple in India—saw prices surge by 53.6% year-on-year, with a 19.4% increase from the previous month.
Tomato and onion prices also remained high on an annual basis, though tomato prices saw a modest increase sequentially while onion prices dipped.
Before recent rain showers in several parts of the country (and a dust storm in Mumbai), most regions of India faced soaring temperatures and heat waves. However, as happens every year, summer also heralded the arrival of mangoes. Despite lower yields in many areas, mango prices surged by 25.45%.
On the utilities front, electricity rates climbed by 10.2% compared to last year, while fuel prices continued to decline following recent price reductions.
Gold prices soared by 17.7%.
