India's retail inflation News

Food inflation dropped to 1.78 per cent in April, down from 2.69 per cent in March and a sharp fall compared to 8.7 per cent in the same month last year.

"The higher-than-expected inflation has been led by vegetables, pulses, and protein-rich items. Weather-related disruptions are expected to keep prices of perishable food items elevated in the near term, says Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank, Mumbai."

After declining for three months, retail inflation rose to 7 per cent in August due to higher food prices.

According to global financial services major Bank of America Merrill Lynch (BofAML), retail inflation is expected to stay muted at around 3.5 percent in September and 3.3 percent in October, which will give RBI the room to ease interest rates.

At present, the price situation is much better with CPI inflation down to 5 percent and the WPI remaining in the negative territory for past several months.

India's adequate food stocks would help contain inflation, even if summer monsoon rains turn out to be weak, Chief Economic Adviser Arvind Subramanian said on Tuesday.