India's consumer price index (CPI) inflation rose to 7.79% in April 2022, an eight-year high, according to government data released on 12 May 2022. The increase was driven mainly by higher food and fuel prices.
Key numbers
- April 2022: 7.79%
- March 2022: 6.95%
- April 2021: 4.23%
- Food inflation: 8.38% in April, up from 7.68% in March and 1.96% a year earlier
How high is that?
The previous high for CPI retail inflation was 8.33% in May 2014. The government's target is 4%, with a tolerance band of 2 percentage points on either side, and inflation had stayed above 6% since January 2022.
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The RBI's response
In the week before the data, the Reserve Bank of India raised its repo rate by 40 basis points to 4.40% in an unscheduled meeting, its first hike since 2018. The RBI governor warned that inflationary pressures were likely to continue, while analysts said the April number was largely in line with expectations.
What it means for households
Higher inflation means everyday items such as cooking oil, vegetables and fuel cost more, and rising interest rates make loans costlier. This article reports official data and press coverage and is not financial advice.
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Frequently asked questions
What was India's retail inflation in April 2022?
It was 7.79%, an eight-year high, up from 6.95% in March 2022 and 4.23% in April 2021.
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What drove the rise?
Mainly food and fuel prices. Food inflation was 8.38% in April.
What did the RBI do?
In the week before the data it raised the repo rate by 40 basis points to 4.40% at an unscheduled meeting, its first hike since 2018.
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