Food price index was 4.8% last March. It fell to 3.8% in April. Inflation in urban areas remains high at 4.9%. At the same time the inflation rate in rural areas is 4.7%.
Figures indicate that there has been relief in the prices of many important food items. Lower prices of food items and fuel are the main reasons behind the fall in inflation. Low availability of energy and low prices of food grains and vegetables helped to reduce inflation. At the same time, there has been no decrease in prices of food grains, spices, personal care products, textiles, footwear etc.
Monsoon is of great importance in determining the rate of inflation in the country. Climatic phenomena including El Nino may influence the distribution of monsoons across the country.
Such factors related to the agriculture sector can have a major impact on inflation.
In other figures released by the NSO, the industrial production index of the country recorded a decline. The growth rate eased to 1.1% in March. It was 5.8% in the previous month. This is a 2.2% decline from March 2021-22. In the growth rate of the manufacturing sector, a decline of 0.5% was recorded in March. This is a growth of 1.4% in the same period of the previous year. In March 2021-22, the electricity sector recorded a growth of 6.1%. It shrank to 1.6% last March.
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