New Delhi, April 15 (HS): After wholesale inflation, the retail inflation rate also fell to around a six-year low of 3.34 percent on a year-on-year basis in March. Previously, it was at 3.28 percent in August 2019.

The Ministry of Statistics and Program Implementation reported on Tuesday that due to a decline in prices of vegetables and protein-rich products, the consumer price index (CPI)-based retail inflation rate slightly decreased to about a six-year low of 3.34 percent in March. According to the data, food inflation was 2.67 percent in March, compared to 3.75 percent in February and 8.52 percent in March 2024. Rural inflation decreased from 3.79 percent to 3.25 percent, while urban inflation rose from 3.32 percent to 3.43 percent. Food and beverages account for nearly 50 percent of the inflation basket.

The Reserve Bank of India (RBI) reduced the policy repo rate by 0.25 percent to six percent last week. The central bank has projected that the retail inflation rate will remain at four percent for the fiscal year 2025-26. The RBI has estimated it to be 3.6 percent in the first quarter, 3.9 percent in the second quarter, 3.8 percent in the third quarter, and 4.4 percent in the fourth quarter, while the risks are equally balanced on both sides.

Hindusthan Samachar / Jun Sarkar