India’s retail inflation eases to 3.34% in March, a near six-year low

Retail inflation dipped marginally to a nearly six-year low of 3.34 per cent in March due to a decline in prices of vegetables and protein-rich items.

The Consumer Price Index (CPI)-based inflation was 3.61 per cent in February and 4.85 per cent in March last year.

The inflation rate in March 2025 is the lowest since August 2019, when it was 3.28 per cent. Food inflation in March was 2.69 per cent compared to 3.75 per cent in February and 8.52 per cent in March 2024.

Last week, the Reserve Bank reduced the key short-term lending rate (repo) by 25 bps in the wake of easing inflation.

The Reserve Bank has projected CPI inflation for the current fiscal 2025-26 at 4 per cent, with Q1 at 3.6 per cent, Q2 at 3.9 per cent, Q3 at 3.8 per cent, and Q4 at 4.4 per cent. The risks are evenly balanced.