Highfrequency food prices data for April 2021 from the Department of Consumer Affairs (DCA) suggests further softening of prices of cereals and key vegetables while price pressures in pulses and edible oils remain. Prices of petrol and diesel registered some moderation in April. Manufacturing and services PMIs along with rising W PI inflation show a persistence of input price pressure.
The May 12 release of the National Statistics Office will throw more light on inflation developments in April. Going forward, a normal south-west monsoon, as forecast by the IMD should help to contain food price pressures, especially in cereals and pulses. The build-up in input price pressures across sectors, driven in part by elevated global commodity prices, remains a concern.