What Got Cheaper and Costlier in March as CPI Falls to 67-Month-Low of 3.34%?
In a recent development, India’s retail inflation has taken a significant dip, falling to a 67-month-low of 3.34% in March. This decline in the Consumer Price Index (CPI) has led to a mixed bag of price movements across various essential commodities. While some items have become cheaper, others have seen a marginal increase in prices.
According to the latest data released by the Ministry of Statistics and Programme Implementation, the CPI, which measures the average change in prices of a basket of goods and services, has fallen sharply in March. This decline is largely attributed to a significant drop in the prices of essential items such as eggs, vegetables, and pulses.
Cheaper Items:
- Eggs: The price of eggs has seen a notable decline, dropping by 12.13% in March. This is a welcome relief for egg lovers, as the cost of this staple protein has been rising steadily over the past few months.
- Vegetables: The prices of vegetables have also fallen, with a decline of 10.14% in March. This comes as a respite for consumers who were facing a rise in vegetable prices due to seasonal fluctuations.
- Pulses: Pulses, which are a crucial part of the Indian diet, have seen a significant drop in price, falling by 8.66% in March. This is a positive development, as pulses are an essential source of protein for many Indians.
Marginal Decline:
While these items have seen a significant decline in prices, some other essential commodities have seen a marginal drop in prices. These include:
- Spices: The prices of spices have fallen by 0.33% in March.
- Meat, Fish, and Eggs: The prices of meat, fish, and eggs have seen a marginal decline of 0.16% in March.
- Housing: The cost of housing has seen a marginal decline of 0.11% in March.
- Recreation and Amusement: The prices of recreation and amusement activities have fallen by 0.09% in March.
Costlier Items:
On the other hand, some items have seen a marginal increase in prices. These include:
- Fruits: The prices of fruits have seen a significant jump of 3.33% in March.
- Cereals: The cost of cereals has risen by 1.01% in March.
- Milk: Milk prices have seen a marginal increase of 0.85% in March.
- Oil: The prices of oil have risen by 0.74% in March.
- Sugar: Sugar prices have seen a marginal increase of 0.64% in March.
- Confectionery: The cost of confectionery items has risen by 0.59% in March.
- Clothing: Clothing prices have seen a marginal increase of 0.54% in March.
- Snacks: Snack prices have risen by 0.48% in March.
- Sweets: The prices of sweets have seen a marginal increase of 0.44% in March.
- Pan, Tobacco, and Footwear: The prices of pan, tobacco, and footwear have risen by 0.39%, 0.35%, and 0.32%, respectively, in March.
- Fuel: Fuel prices have seen a marginal increase of 0.27% in March.
- Health and Education: The prices of health and education services have risen by 0.24% and 0.21%, respectively, in March.
Impact on Consumers:
The decline in retail inflation and the mixed bag of price movements across various commodities is likely to have a significant impact on consumers. While the decline in prices of essential items such as eggs, vegetables, and pulses is a welcome relief, the marginal increase in prices of other items may lead to some inflationary pressures.
Conclusion:
In conclusion, the retail inflation in India has fallen to a 67-month-low of 3.34% in March, leading to a mixed bag of price movements across various essential commodities. While some items have become cheaper, others have seen a marginal increase in prices. As the economy continues to evolve, it will be interesting to see how these price movements impact consumer behavior and overall inflation trends.
Source: Ministry of Statistics and Programme Implementation. (2023). Press Release. Retrieved from https://pib.gov.in/PressReleseDetail.aspx
