Coal news and updates

April retail inflation inches up to 8.59%

May 13: Retail inflation in April, 2014, inched up to 8.59% from 8.31% in March, mainly on account of a rise in fruit and vegetable prices.

"Provisional annual inflation rate based on the all-India general consumer price index (combined) for April 2014 on point-to-point basis (over April 2013) is 8.59% as compared to 8.31% for March 2014," the Central Statistics Office (CSO) said in a statement.

The corresponding provisional inflation rates for rural and urban areas for April were 9.25% and 7.69%, respectively. Inflation rates (final) for rural and urban areas for March were 8.89% and 7.51%, respectively.

Overall inflation in the food basket, including beverages, increased to 9.66% in April from 9.1% in the previous month, according to the consumer price index (CPI) data released by the CSO.

Vegetable prices increased 17.50% in April as against 16.8% in March. The prices of fruits rose 21.73% in April compared to a 17.19% increase in March.

Retail or consumer inflation in protein-rich items such as eggs, fish and meat eased to 9.41% in April from 9.54% in March.

However, the rate of price rise for cereals and related products increased 9.67 % in April from 9.61% in March while the price of milk and its products increased 11.42% in April compared to 11.02% in March.

Prices of condiments and spices rose 9.33% from 8.87% in March.

Credit rating agency CRISIL said: "In the months to come, high inflation in food articles such as vegetables, fruits, milk and milk products will keep retail inflation to around the current level. An enhanced possibility of an El Niño in 2014 could push up CPI inflation with the weight of agriculture-related articles accounting for 50% of the CPI. However, on the upside, inflation is likely to be capped as the lagged impact of previous rate hikes seeps through and a strong base effect from last year lowers headline inflation."