India’s retail inflation, measured by the Consumer Price Index (CPI), eased to 4.85% in March 2025, according to the latest data released by the Ministry of Statistics and Programme Implementation. This marks a notable drop from 5.09% recorded in February, providing a breather for both households and the Reserve Bank of India (RBI) amid persistent concerns over price stability.
The decline was largely driven by a slowdown in food inflation, especially vegetables, cereals, and pulses, which make up a significant portion of the CPI basket. Analysts suggest that the improved supply chain management and favorable weather conditions helped in taming food prices. The lower inflation rate remains within the RBI’s comfort zone of 2-6%, raising expectations that the central bank may consider a more accommodative monetary stance in its upcoming policy meet.
Economists believe that sustained moderation in inflation could stimulate consumption and support broader economic growth. However, they also caution that global commodity price volatility and geopolitical uncertainties could still pose upside risks. For now, the latest inflation print has brought optimism for consumers and businesses alike.
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