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