India’s retail inflation hits six-month high in April

NEW DELHI: Retail inflation rate hit a six-month high in April, due to bigger increases in food prices, but remained below the central bank’s target for a ninth month, keeping hopes alive for a June cut in the key interest rate. Annual retail inflation in April was 2.92%, up from the provisional 2.86% in the previous month, but slightly below analyst forecasts, government data showed on Monday. A Reuters poll had predicted an April retail inflation rate of 2.97%. While low inflation is helping the economy, declining farm incomes and record high unemployment have hit consumer demand and economic growth. The economy likely grew an annual 6.5% in January-March, according to government estimates.