India’s retail inflation eased to 3.34 percent in March from 3.61 percent in February, driven by significant easing in food prices. According to data released by the Ministry of Statistics and Programme Implementation, it is the lowest year-on-year inflation after August, 2019. Meanwhile, inflation in rural areas stood at 3.25 percent and at 3.43 percent in urban regions.
The food inflation rate for the last month, based on the All India Consumer Food Price Index, is provisionally reported at 2.69 percent, down from 3.75 percent recorded in February. Corresponding food inflation rate for rural areas stood at 2.82 percent and for urban areas reported at 2.48 percent. The ministry said that the food inflation were lowest after November, 2021.
According to the Ministry, decline in headline inflation and food inflation during the month of March is mainly attributed to decline in inflation of Vegetables, Eggs, Pulses and products, Meat and fish, Cereals and Milk products.
The Reserve Bank of India aims to keep inflation within a range of 2 to 6 percent, with a medium-term target of 4 percent. Earlier this month, the RBI revised its inflation forecast for the fiscal year 2025-26 to 4 percent, down from 4.2 percent, citing a significant improvement in the food inflation outlook.