A worker has a sack full of refined wheat flour to load it in a supply truck in a wholesale market in Kolkata, India, on April 10, 2025.
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The annual inflation rate of India fell to a 3.34% most anticipated in March, the Ministry of Statistics and implementation of the country’s program reported Tuesday.
The reading fell for the fifth consecutive month and arrived slightly below the 3.61% seen in February, since the growth in food prices continued to soften. The economists surveyed by Reuters expected a reading or 3.6%.
Food inflation, which is a key component of the country’s consumer price index, reached 2.69%. The decrease was directed by a drop in the prices of vegetables, spices, eggs and legumes.
Inflation data follow a second consecutive interest in the Bank of the India Reserve at its meeting on April 9, which bears its 6% policy rate in the middle of Growth Conns in the fifth largest economy in the world.
The RBI estimates the inflation of 4%, at the midpoint of its objective range or from 2%to 6%, for the financial year that ends in March 2026, although it pointed out that central inflation in February, which excludes food and combustible, dridhivisvisvislves Dristlisvends Aconmonsvevenvenvenvevenvenvenventonvends Drivensvenvens prices.
“There has been substantial and broad -based seasonal correction in vegetable prices. Rabi’s uncertainties [winter] The crops have decreased considerably … along with Robust Kharif [autumn] Arrivals, this is expected to prepare the scenario for durable softening in food inflation, “said the Central Bank last week.
More space for rates cuts
Inflation data strengthens the case that the RBI reduces rates, since it seeks to stimulate growth in India, amid the impact of US tariffs.
“The fall in Indian consumer prices in March in March, which pushes it more below the 4% target of the Indian Reserve Bank (promoted races), reinforces our opinion that the Central Bank will loosen a little more than that the UTHE Than Than Maher, an economist of Economics Capital in London.
The Governor of RBI, Sanjay Malhotra, said in his statement after the policy meeting last week that the Central Bank will change its posture of neutral to accommodation, with the aim of stimulating the economy through softer interest rates.
India’s GDP expanded by a 6.2% expected of Waker-Hhan in the fourth quarter of 2024, and it is estimated that the country’s economy grew by 6.5% in the financial year until March 2025, a strong deceleration of 9.2% the previous year.
The “reciprocal” tariffs will directly shave 0.5 percentage points from the growth of the entire year of India for the financial year that ends in March 2026, according to HSBC. There could be indirect and second order impacts that include more slow export volumes and direct foreign investment flows of Waker, the bank added.
India was beaten with a tax of 26% of the “reciprocal” tariffs of the president of the United States, Donald Trump, before the Dekens were suspended for 90 days last week, leaving a 10% reference tariff.
