CPI inflation accelerates to 8.59% in April 2014

The headline CPI inflation (combined) for April 2014 further accelerated to three months high at 8.59% (y-o-y) from 8.31% in March 2014, driven by higher food prices. The index increased to 139.1 from 138.1 seen in March and 128.1 April 2013. The rise in index of food category, especially vegetables pushed the CPI inflation up. Retail food prices in April rose 9.66% from a year earlier, faster than a provisional 9.10% rise in March.

The vegetables prices on monthly basis rose to 3.54% from a rise of 1.58% in March. Also the prices increased to 17.50% (y-o-y) in April from 17.05% in March 2014. Along with vegetables, fruits index also increased to 21.73% from 17.33% in March 2014.

CPI inflation in protein-rich items such as eggs, fish and meat eased to 9. 41% (y-o-y) in April from 9.47% in March. The rate of price rise for cereals and related products increased to 9.67% in April from 9.53% in the previous month. Moreover, the price of milk and its products increased 11.42% in April compared with 11.02% in the previous month. Prices of condiments and spices rose 9.33% from 8.87%in March. Meanwhile, the fuel and light category saw a rise of 5.96% from 6.29% in March. Meanwhile, the price rise of clothing, bedding and footwear products eased from 8.96% in March to 8.83% in April.

The rate of price rise in rural area increased to stand at 9.25%, substantially high from 8.89% in March. While in urban areas, the inflation increased to 7.69% from 7.51%.

In combined CPI some of the biggest m-o-m rise was registered by fruits (6.93%), vegetables (3.54%) and sugar etc (2.08%), leading to a rise in Food, beverages and tobacco category at 1.21%. Clothing, bedding and footwear category also saw a rise of 0.53%. In the urban areas for April also, the biggest m-o-m rise was seen under fruits (8.96% after rising to 3.80% in March), and vegetables saw the rise (6.53%). Moreover, in the rural areas also for April, the categories recorded rise on m-o-m basis including fruits (5.50%, after rising to 2.73% in March), vegetables (2.30%) and sugar etc (1.21%), leading to a rise in Food, beverages and tobacco category at 0.92%, after rising to 0.78% in March.

For April 2014, the state wise biggest uptick, in the rural segment, was noted by Nagaland (3.31%, m-o-m) followed by Tripura (2.45% m-o-m) while biggest fall was recorded in Mizoram (0.82% m-o-m). For April 2014, the state wise biggest upside, in the urban segment, was noted by Daman and Diu (2.01%, m-o-m), while the biggest fall was noted by Andaman & Nicobar Islands (0.15% m-o-m).

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