Among food, vegetables saw a defalration or around 7 percent, while pulses were approximately 2.7 percent.
The strong correction in food prices caused retail inflation based on the Consumer Price Index (CPI) to 3.34 percent in March compared to 3.6 percent of February, the government reported Tuesday. It is the lowest year -on -year inflation after August 2019.
“The significant decrease in inflation of the main ones and the duration of food inflation is mainly attributed to the decrease in inflation of vegetables, eggs, legumes and products, meat and fish, cereals and products and milk and products,” said a statistical ministry. There is a decrease or 27 basic points in the main inflation of March compared to February. Food inflation saw a decrease or 106 basic points, falling to 2.69 percent in March 3.75 percent in February.
“Food inflation in March 2025 is the lowest after November 2021,” said the Ministry. Among food, vegetables saw a defalration or around 7 percent, while pulses were approximately 2.7 percent. Meanwhile, edible oils and fruits saw an increase in prices, since the inflation of both articles increased to more than 17 percent and 16 percent, respectively.
The nucleus inflation (main inflation less food and fuel inflation) was greater than 4 percent.
Rajani Sinha, Chief Economist With Caradge, Said: “Core inflation Also Remained Benign at 4.1 per cent is worthwhile to Marginal Uptick. Interestly, The Fuel and Light category Category Exited Deflation AFTER STAYING IN FUEL AND DEFONT, THE Thesever, Defhaly, Defhaly for Defave, Defhaly Forver, Defhaly Forver, Defhaly for Defiles.
LPG price walk
There were Conerns on whether the expected heat waves. An HDFC Bank note said an increase in the price of food is expected in the next summer season. “The increase in the price of LPG in ₹ 50 per cylinder is likely to have an impact or 8 basic points on the main CPI,” he said.
With a deeper reduction in the inflation of the holders, there is the expectation that the monetary policy committee can obtain another cut at the June meeting. “The softer CPI inflation will provide more comfort to the RBI to continue prioritizing growth. We maintain our opinion that RBI will continue with its accommodated posture with the terminal repository rate probably around 5-5.25 percent,” said UPASNA Bhardwaj, chief economist of Kotak Mahindra Bank.
Echoing the feeling, Radichika Rao, a senior economist of DBS Bank, said that despite a firmer nucleus, the January inflation -titular of March not only underlines the quarterly projection of the RBI by a wide margin, but rather the objective of the RBI. “This validates the decision of the Central Bank to change to a housing position, along with a reducing rate reduction at the April meeting. We maintain our call for greater flexibility in June,” he said.
WPI inflation
The inflation of the producers based on the wholesale pricing index (WPI) fell to about 2 percent in March compared to 2.38 percent or February. However, it is much higher than 0.26 percent of March 2024.
“The positive inflation rate in March is mainly due to the increase in the prices of manufacturing food products, other manufacturing, food items, electricity and textile manufacturing, etc.,” said a statement from the Ministry of Commerce and Industry.
Posted on April 15, 2025