Retail Inflation Rate: India’s retail inflation rate has reached a 9-month low. The government has released the retail inflation rate data for March. The retail inflation rate has declined to 4.85 percent in March, which is lower than 5.09 percent in February. On April 12, the Ministry of Statistics and Program Implementation has released the retail inflation rate. According to the report, the retail inflation rate has been the lowest since June 2023. In June last year it was 4.81 percent.
Last week, on April 5, the Monetary Policy of the Reserve Bank of India had released the latest inflation data, in which there was no change in the policy repo rate. In the monetary policy of the Reserve Bank, for the seventh consecutive time the policy repo rate has been kept at 6.5 percent. According to the forecast of the Central Bank, the Consumer Price Index (CPI) is seen at 4.5 percent this financial year.
Inflation rate of food products also reduced
Retail inflation declined to a nine-month low of 4.85 percent in March due to softening of food prices. This information was given in the official figures released on Friday. Inflation based on Consumer Price Index (CPI) was 5.09 percent in February, while it stood at 5.66 percent in March 2023.
Retail inflation has been at a 9-month low in March. Earlier in October, 2023 it was 4.87 percent. According to National Statistical Office (NSO) data, the inflation rate of food products stood at 8.52 percent in March, whereas it was 8.66 percent a month earlier in February.
normal monsoon expected
The government has entrusted the Reserve Bank with the responsibility of keeping retail inflation limited to four percent (plus or minus two percent). The Monetary Policy Committee of the Reserve Bank takes into account retail inflation data while deciding on policy rates. Expecting a normal monsoon this year, the central bank has estimated retail inflation to be 4.5 percent for the current financial year. RBI has estimated retail inflation at 4.9 percent in the April-June quarter and 3.8 percent in the September quarter.
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