By Ed Frankl
Inflation in India eased for the fourth straight month, despite still-elevated food prices, suggesting the country's central bank is on track to cut rates later this year.
The country's consumer-price index rose 4.83% on year in April, a small decline from the 4.85% reported in March, according to figures released Monday by the Indian government. Economists had expected annual inflation to be at 4.9%, according to a consensus compiled by FactSet.
April's inflation rate is the lowest since May 2023, having declined from more than 7% in the summer of last year.
Food inflation, which makes up the lion's share of the CPI basket, climbed a little to 7.9% from around 7.7% in March. Fuel prices, however, continued to tumble, with prices 4.2% lower than the same point last year. Urban inflation in April was 4.1%, while rural inflation was 5.4%.
Though inflation is still above the Reserve Bank of India's 4% target, it has a tolerance band of 2% above and below that level. The central bank its key policy rate at 6.5% for the seventh meeting in a row in April.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
05-13-24 0830ET
