BOB Report: Retail inflation may come below three percent, fall in food prices is the result of better management
BOB Report: According to the Bank of Baroda report, the retail inflation rate may go below three percent in the April figures. Its figures will be released next week. For some time now, there has been a huge decline in the prices of food items, especially pulses and vegetables, which will affect the retail inflation.
Once they have received the respite from the high rates of interest, now the common man is likely to get the benefit from the decrease in inflation as well. As seen from the report of the Bank of Baroda, the retail inflation is expected to dip below three percent in the figures of April. It will come out next week. For the past some time, there has been sharp fall in the prices of vegetables and pulses, which will influence the retail inflation.
According to the report, the reduction in retail inflation will give RBI more opportunity to cut rates. There may be a bigger cut in the repo rate in the meeting to be held in June. The heat has decreased in tomato, onion and potato producing states. The retail price of tomato has fallen to the lowest since August, 2024. It has decreased by 34.4% year-on-year in April, 2025. Potato and onion prices have decreased by 11% and 5.7% respectively in April, 2025 on an annual basis.
The retail price of rice has decreased by 4.1% in April as compared to March. Although the prices of edible oils have increased, it is not in a position to affect retail inflation. There is a tremendous decline in the prices of tomatoes, onions and potatoes.
