Page 542 - ES 2020-21_Volume-1-2 [28-01-21]
P. 542

Prices and Inflation  169


             5.9    CPI headline and CPI core inflation from April 2020 to October 2020 was driven mostly
             by substantial increase in price momentum i.e., increase in recent price index was pushing up
             the inflation each month (Figure 7). In both cases, positive base effect helped moderate the
             inflation. A major jump is witnessed in April 2020, with inflation rate increasing from 5.8 per
             cent in March 2020 to 7.2 per cent in April 2020 and then declining to 6.3 per cent in May 2020.
             The jump is mainly witnessed on account of sudden and sharp increase in momentum in the
             month of April 2020, possibly due to the initial disruptions caused by COVID-19 lockdown. By
             November 2020, price momentum moderated significantly and coupled with positive base effect
             helped ease inflation.
                              Figure 8: CPI food and beverages and its sub-group inflation

                                                  Food and Beverages





















                         Cereals and products                           Pulses and products



















                             Oils and fats                                   Vegetables
   537   538   539   540   541   542   543   544   545   546   547