India’s retail inflation surges to 8-year record high of 7.79% in April as food, fuel prices spike

The retail inflation in India surged to an eight-year high of 7.79 per cent in April this year, which may prompt the Reserve Bank to go in for another interest rate hike in the next month policy review to tame price rise. To contain inflation going out of control, Reserve Bank has raised its key lending rate off record lows at an off-cycle meeting earlier in May. The surge is largely driven by rising fuel and food prices.

The retail inflation stayed well above the Reserve Bank of India's upper tolerance limit for a fourth consecutive month due to high fuel and food prices amidst war in Ukraine.