India’s retail inflation hit an eight-year high of 7.79 percent

The Consumer Price Index (CPI) inflation rate for April was 7.79 percent, up 84 basis points from 6.95 percent in March, according to figures issued on May 12 by the Ministry of Statistics and Programme Implementation. Last month, inflation was predicted to spike dramatically. The April reading, on the other hand, is greater than the already high consensus estimate. For the fourth month in a row, consumer price-based inflation remained significantly above the RBI’s upper tolerance range. According to numbers released on May 12 by the Ministry of Statistics and Programme Implementation, the Consumer Price Index (CPI) inflation rate for April was 7.79 percent, up 84 basis points from 6.95 percent in March.

The increased pricing expectation prompted the RBI to raise its repo rate for the first time in four years, to 4.40 percent, in an off-cycle meeting earlier this month. The repo rate is the interest rate at which the Reserve Bank of India loans money to commercial banks.

By Subhechcha Ganguly