India’s wholesale inflation easing to a 13-month low of 0.85 per cent in April marks more than just a statistical footnote ~ it signals a potential pivot point for economic policy and business sentiment. The decline, primarily driven by softer food and fuel prices, reinforces a narrative of macroeconomic stability at a time when global markets remain volatile and fragmented. The sharp contraction in vegetable prices, falling over 18 per cent year-on-year, reflects improved supply conditions and perhaps a normalisation of seasonal pressures.

This price correction, while relieving for consumers, also suggests that producers and intermediaries are operating under tighter margins, which could have downstream effects on rural incomes if the trend sustains. Nonetheless, the moderation in food inflation ~ down to 2.55 per cent from March’s 4.66 per cent ~ is an encouraging development for household budgets and inflation-sensitive policy........

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