Inflation: There is a major relief from inflation.Retail inflation declined in the month of March due to reduction in prices of vegetables and protein products. Retail inflation declined to 3.34 percent in March, which was at 3.61 percent in February last month. At the same time, inflation was 4.31% in January and 4.85 percent in March last year.
This information was given in the government data released on Tuesday. Let us tell you that this figure has been much better than the market estimate. According to the data, food inflation is at its lowest since November 2021. This means that the prices of food items have come down.
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Based on the Consumer Price Index (CPI), food inflation stood at 2.69 per cent in March, as against 3.75 per cent in February and 8.52 per cent in March 2024. The Reserve Bank of India (RBI) mainly looks at retail inflation while formulating monetary policy. The RBI last week reduced the key repo rate by 0.25 per cent to 6 per cent.
The central bank has projected retail inflation to be four per cent for the current financial year 2025-26. It is estimated to be 3.6 per cent in the first quarter, 3.9 per cent in the second quarter, 3.8 per cent in the third quarter and 4.4 per cent in the fourth quarter, while risks are evenly balanced on both sides.
Wholesale inflation at 6-month low
Let us tell you that earlier, due to the fall in the prices of food items, the Wholesale Price Index based inflation came down to a 6-month low of 2.05 percent on a monthly basis in March. Earlier, in September last year, the wholesale inflation was at 1.91 percent. At the same time, the Wholesale Price Index based inflation was 2.38 percent in February. However, it has increased in March on an annual basis. In March 2024, it was 0.26 percent.