March CPI Data: India's Retail Inflation Eases To 3.34%, Lowest Since August 2019
The retail inflation in March grew at the slowest pace in over five years.
India's retail inflation slipped to the lowest since August 2019, led by lower vegetable prices.
The consumer price index-based inflation moderated to 3.34% in March, from 3.61% in February, according to data from the Ministry of Statistics and Program Implementation on Tuesday.
A Bloomberg poll of economists had pegged the median inflation estimate at 3.5% for March.
Food and beverage inflation eased to 2.88% from 3.84% in February. The decline was led by vegetable inflation, which contracted by 7.04% after contracting by 1.07% in February. On a monthly basis, vegetable inflation eased by 5.7% from February.
Core inflation – which excludes the volatile food and fuel components – saw an uptick to 4.2% in March compared to 4.08%, according to Bloomberg.
Inflation At 67-Month Low
The softer-than-expected CPI inflation will provide further comfort to the RBI as it continues to prioritise growth, Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, said. "We retain our view that RBI will continue on its accommodative stance with the terminal repo rate likely around 5-5.25%."
The outlook for food inflation has turned decisively positive, RBI Governor Sanjay Malhotra stated at the Monetary Policy Committee meeting last week. The RBI projects CPI inflation for FY26 at 4%, with Q1 at 3.6%.
Key Inflation Metrics
Cereal prices rose by 5.93% after rising by 5.47% in February.
Inflation for meat and fish was 0.32% compared to a rise of 2.23% in the previous month.
The inflation rate for milk and milk products was 2.56% compared to 2.84% in the previous month.
Inflation in the pulses category contracted by 2.73% after contracting by 0.39% last month.
Clothing inflation rose 2.71% after rising 2.86% in the preceding month.
Housing prices went up by 3.03% compared to 2.91% last month.
Fuel and light inflation was 1.48% compared to -1.33% in February.
