In March, India’s retail inflation fell to a 15-month low of 5.66 percent, compared to 6.95 percent the previous year for the same time period. The National Statistics Office (NSO) released these data to the public on Wednesday.
In March, the urban inflation rate was 5.89 percent, while the rural inflation rate was 5.51 percent. The Consumer Food Price Index (CFPI) fell by 4.79 percent compared to the previous month’s figure of 5.96 percent.
In India, headline inflation fell to 5.66 percent earlier this year, down from 6.95 percent in the same month the previous year.
Last week, the Reserve Bank of India (RBI) revised its monetary policy. During the meeting, the repo rate stayed unchanged at 6.5%. In addition, the central bank predicted that consumer price inflation will fall slightly to 5.2 percent in fiscal year 2023–2024.
“The CPI has slowed down to a 15-month low of 5.66%. This figure is below the RBI’s target of keeping below the 6% mark. The data indicates the RBI’s estimate of inflation slowing down as we move ahead in the calendar year 2023. Food inflation and vegetable prices slowing down helped the final figure in a big way. The core inflation has fallen below the 6% mark to 5.8% in the month of March. The figure will help the central bank stay on pause for the next few months. The IIP data at 5.6% is a positive development. The manufacturing sector growth at 5.3% indicates the activity in the economy. From now on, the pace of inflation and a good monsoon year will guide the central bank’s action,” said Nish Bhatt, founder, and CEO of Milwood Kane International.