Retail inflation dips marginally to nearly 6-year low of 3.34% in March

New Delhi: India's retail inflation dipped marginally to a nearly six-year low of 3.34 per cent in March due to declining 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. Retain inflation is the rise in the prices of goods and services purchased by the general public. It is also an indication of the consumer's purchasing power. 

The inflation rate in March 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 response to easing inflation.

The RBI 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. 

Meanwhile, government data showed on Tuesday that wholesale price inflation declined to a six-month low of 2.05 per cent in March as prices of vegetables, potatoes, and other food items eased.

In February, wholesale price index (WPI)- based inflation was 2.38 per cent, up from 0.26 per cent in March last year.