Retail inflation fell marginally to 4.83 per cent in April from 4.85 per cent in March, but rising food inflation threatens to scupper any plan of the Reserve Bank of India to cut rates.

The National Statistical Office (NSO) reported that inflation in the food basket hit a four-month high of 8.70 per cent in April, up from 8.52 per cent in March.

While the marginal decline in headline inflation may offer some temporary relief, the central bank is likely to remain cautious due to the persistent threat from food prices, economists said.

Prices for vegetables saw a slight dip, but fruits, cereals, meat, and fish all experienced increases. This rise in essential food items puts a significant strain on household budgets, particularly for low-income families.

Core inflation, which excludes food and fuel, remained at 3.25 per cent in April, according to economists.

Analysts warn that the heatwave gripping parts of India could further exacerbate food price pressures in the coming months.

Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, expects food prices to remain elevated due to potential disruptions caused by the extreme weather.

Aditi Nayar, chief economist, Icra, forecasts food and beverage inflation to rise above 8 per cent in May because of a higher base effect from last year and the ongoing heatwave.