As opposed to the figure of 6.95 percent that was recorded for the same time period one year before, India’s retail inflation reached a 15-month low of 5.66 percent in March. The National Statistical Office (NSO) published these findings on Wednesday for public consumption.
The inflation rate in urban areas was 5.89 percent in March, while the inflation rate in rural areas was 5.51 percent. In comparison to the previous month’s reading of 5.96 percent, the Consumer Food Price Index (CFPI) saw a decrease of 4.79 percent.
Inflation as measured by the headline rate dropped to 5.66 percent earlier this year in India, down from 6.95 percent in the same month of the previous year.
The Reserve Bank of India (RBI) reviewed its monetary policy last week. The repo rate remained unaltered at 6.5% during the whole meeting. Also, the central bank said that they anticipate consumer price inflation to slightly decrease to 5.2 percent in the 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.
