India’s CPI inflation falls to a 10-month low of 4.85% in March

India’s Consumer Price Index (CPI) inflation fell to a 10-month low of 4.85% in March against 5.09% in the previous month, data released by the Ministry of Statistics and Programme Implementation on Friday showed.

India’s Consumer Price Index (CPI) inflation fell to a 10-month low of 4.85% in March against 5.09% in the previous month, data released by the Ministry of Statistics and Programme Implementation  on Friday showed. A poll from Reuters had expected the number to fall to 4.91% in March. Inflation has been within the RBI’s acceptable band of 4% (+/-2%) since September of 2023.

The Food and beverage inflation came in at 7.6% in March as against 7.8% reported in the month of February, data showed. Vegetable prices came in higher at 28.3% in March but a tad lower than 30.2% in the previous month.

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“The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest,” RBI Governor Shaktikanta Das said in its latest monetary policy speech.

According to the central bank’s latest forecast, CPI inflation is seen at 4.5 percent for the current financial year.