MANU/PIBU/0888/2019

Department/Board : Press Information Bureau

Date : 04.07.2019

Headline inflation based on CPI-C declined to 3.4 per cent in 2018-19

Food inflation based on Consumer Food Price Index (CFPI) declines over last five years, and remains below 2.0 per cent for the last two consecutive years Rural Inflation (CPI) declined during FY 2018-19; many States witnessed fall in CPI Inflation during FY 2018-19

The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman tabled the Economic Survey 2018-19 in Parliament today. The Economic Survey states that the economy witnessed a gradual transition from a period of high and variable inflation to more stable and low level of inflation in the last five years.

The Survey notes, "Headline inflation based on the Consumer Price index - Combined (CPI-C) has been declining continuously for the last five years. Headline CPI inflation declined to 3.4 per cent in 2018-19 from 3.6 per cent in 2017-18, 4.5 per cent in 2016-17, 4.9 per cent 2015-16 and 5.9 per cent in 2014-15". The Economic Survey further adds, "It stood at 2.9 per cent in April 2019 as compared to 4.6 per cent in April 2018. Food inflation based on Consumer Food Price Index (CFPI) declined to a low of 0.1 per cent during the financial year 2018-19".

Referring to Inflation based on Wholesale Price Index (WPI), the survey states, "It remained moderate at 3.0 per cent in 2017-18 compared to 1.7 per cent in 2016-17, (-)3.7 per cent in 2015-16 and 1.2 per cent in 2014-15. During FY 2018-19, WPI inflation stood at 4.3 per cent".

Current trends in Inflation

Referring to the current trends in Inflation, the Economic Survey states "The CPI-C inflation for the month of April 2019 stood at 2.9 per cent same as in March 2019 as compared to 4.6 per cent in April 2018". It further states that the decline in the inflation in the FY 2018-19 was mainly due to low food inflation which ranged between (-) 2.6 to 3.1 per cent.

According to the Economic Survey, Food Inflation in the country has been extremely benign. It stood at 1.1 per cent in April 2019 compared to 0.3 per cent in March 2019 and 2.8 per cent in April, 2018. Food inflation based on Consumer Food Price Index (CFPI) declined to 1.8 per cent in 2017-18 from 4.2 per cent in 2016-17, 4.9 per cent in 2015-16 and 6.4 per cent in 2014-15. Average food inflation for the financial year 2018-19 declined to a low of 0.1 p........