Retail inflation fell to a five-and-a-half-year low of 3.34% in March, down from 3.61% in February, mainly due to falling prices of vegetables, eggs, and pulses, though edible oils and fruits remained costly.
Consumer food price inflation hit a three-year low at 2.7%, compared to 3.75% in February
Overall vegetable prices fell 7%, egg prices dropped over 3%, and pulses deflated by 2.7%.
Rural inflation eased to 3.25%, but urban inflation rose slightly to 3.43%
Fuel and light inflation increased to 1.48%, the first rise since September 2023.
RBI's two 25 bps rate cuts signal a focus on growth; economists expect inflation to stay under 4%, possibly prompting another 50 bps cut.
State-wise inflation: Highest in Kerala (6.6%), followed by states like Chhattisgarh, Maharashtra, Tamil Nadu (above 3.3%); lowest in Delhi (1.5%) and Telangana (1.1%).
Key food prices: Tomatoes down 35%, onions up 19% (from 30%), potatoes up 2.3% (down from 26%), rice up 4.9%, wheat up 9%.
Wholesale inflation also declined to 2.05% in March, from 2.38% in February
Fuel and power prices rose 0.2%, reversing February’s 0.7% fall.
COMMENTS