New Delhi: According to official data from the Ministry of Statistics & Programme Implementation, retail inflation in March decreased to 3.34 percent, down from 3.61 percent in February.
The core inflation rate, measured by the consumer price index (CPI), was recorded at 4.0 percent in March, slightly lower than the 4.1 percent noted in February.
Rural CPI inflation for March was 3.25 percent, a slight decrease from 3.29 percent the previous month. In contrast, urban CPI inflation rose to 3.43 percent in March, compared to 3.32 percent in February.
Food CPI inflation saw a notable decline, dropping to 2.69 percent in March from 3.75 percent in February.
India's retail inflation showed significant improvement in February 2025, with further positive trends observed in March. Notably, food inflation fell sharply by 106 basis points in March compared to February 2025, marking the lowest level since November 2021.
For the first time in six months, retail inflation dipped below 4 percent in February, primarily due to a decrease in vegetable prices.
On April 9, the Reserve Bank of India (RBI) indicated in its monetary policy announcement that inflation is anticipated to remain manageable throughout the financial year 2025-26.
RBI Governor Sanjay Malhotra projected the Consumer Price Index (CPI) inflation for the year to be around 4.0 percent, contingent on a normal monsoon season.
The Reserve Bank of India (RBI) has indicated an optimistic outlook for food inflation, noting a substantial and widespread seasonal drop in vegetable prices.
For the fiscal year 2026, inflation projections are set at 3.6 percent for the first quarter, 3.9 percent for the second quarter, 3.8 percent for the third quarter, and 4.4 percent for the fourth quarter. The central bank has stated that the risks associated with inflation are well-balanced.
