Retail inflation continued to ease in March on lower food and fuel prices and a fall in demand for non-essential items amid a nationwide lockdown to combat the coronavirus pandemic.
To be sure, the ministry, in a press statement, clarified that the field work for price collection of CPI was suspended with effect from March 19, 2020, in view of the preventive measures taken by the NSO and a nationwide lockdown. “Till then, about 66 percent of price quotations were received. The remaining quotations were assessed on the basis of well-established and internationally accepted methodology and practices.”
Rahul Bajoria, chief India economist at Barclays, said from a statistical perspective, data collection agencies had encountered difficulties in collecting the price quotations from all centers, making larges revisions a possibility. The inflation’s trajectory over the next few months, he said, will be influenced significantly by Covid-19 related supply disruptions.
Inflation Internals
- Inflation in fuel and light eased to 6.59 percent in March from 6.36 percent in February.
- Clothing and footwear inflation stood at 2.11 percent compared with 2.05 percent in February.
- Inflation in housing stood at 4.23 percent in March compared with 4.24 percent in the preceding month.
- Household goods and services inflation stood at 1.81 percent against 1.88 percent in February.
- Health inflation stood at 4.17 percent against 4.19 percent.
- Inflation in recreation and amusement stood at 4.36 percent against 4.45 percent in February.
RECOMMENDED FOR YOU
POPULAR