Retail inflation falls to 3.34%, lowest since 2019.

• Retail inflation reached a five-and-a-half-year low of 3.34% in March, largely due to lower food prices.

• Urban inflation increased marginally from 3.32% in February to 3.43% in March.

• Fuel and light inflation increased moderately to 1.48%, marking the first price increase since September 2023.

• Consumer food price inflation (CFPI) hit a three-year low of 2.7% in March, a sharp drop from 3.75% in the previous month.

• The slowing prices follow two consecutive repo rate cuts by the Reserve Bank of India, indicating the central bank’s focus on growth over inflation.

• Economists predict inflation to stay under 4% in the coming months, prompting a 50 bps rate cut.

• Kerala had the highest inflation of 6.6%, followed by Chhattisgarh, Maharashtra, Tamil Nadu, Karnataka, Assam, and Haryana.