According to sources, annual consumer inflation jumped to 11.1 percent in April from 9.1 percent in March, posing a downside risk to the economy’s recovery from the pandemic.
The April outrun is in contrast to the government’s outlook, which predicted that inflation will stay between 8% and 9.5 percent in April.
However, assuming no new supply shocks, favorable base effects may start to push annual inflation lower from the start of the next fiscal year, according to the ministry.
In April 2021, consumer price index (CPI) inflation rose by 1% month over month, compared to a 0.4 percent rise the previous month and a 0.8 percent decline in April 2020.
