New Delhi, April 15 — Retail inflation cooled to 3.34 per cent in March, the lowest level since August 2019, driven by a fall in prices of vegetables and protein-rich foods, according to government data released Tuesday.
The Consumer Price Index (CPI)-based inflation stood at 3.61 per cent in February and 4.85 per cent in March 2024. Food inflation dropped sharply to 2.69 per cent in March from 3.75 per cent the previous month and a steep 8.52 per cent in the same period last year.
The decline comes days after the Reserve Bank of India reduced the repo rate by 25 basis points, citing signs of easing inflationary pressure. The central bank has pegged inflation for the 2025–26 fiscal at 4 per cent, with quarterly projections ranging between 3.6 and 4.4 per cent. “Risks to the inflation outlook are evenly balanced,” the RBI noted.
Wholesale inflation also eased, with the WPI-based rate falling to 2.05 per cent in March — the lowest in six months. It was 2.38 per cent in February and just 0.26 per cent a year ago. Falling prices of vegetables and potatoes contributed significantly to the moderation, the data showed.
