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Rural-Urban Inflation Differential Has Declined: 1. Rural inflation has remained above its urban counterpart throughout the current fiscal year, reversing the trend seen during the pandemic years. CPI-C based food inflation seems to have cooled down after reaching a high of 8.3% in April 2022 due to a moderation in global food prices and a reduction in farm input costs. Hence, statement 1 is correct. 2. However, the cooling was more pronounced for urban inflation. 3. Rural fuel inflation remained lower than its urban counterpart throughout the current fiscal, due to subdued price pressures on traditional fuel items such as firewood and cow dung cakes as opposed to petrol and diesel. Hence, statement 2 is correct.
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