India's retail inflation dips to 4.85 per cent in March

New Delhi: India’s retail inflation declined to 4.85 per cent in March compared to 5.09 per cent in February this year, according to government data released on Friday.

The Consumer Price Index (CPI)-based retail inflation was 5.66 per cent in March last year.  

 The National Statistical Office, under the Ministry of Statistics and Programme Implementation, on Friday released the All India Consumer Price Index (CPI) and corresponding Consumer Food Price Index (CFPI) for Rural (R), Urban (U) and Combined (C) for March 2024.

The data shows more stable pricing environment, potentially offering relief to households in their daily expenses.

The decline in food inflation also played a role in moderating overall inflation.

March witnessed a decrease in food inflation to 8.52 per cent, down from 8.66 percent in February.

While urban inflation decreased to 4.14 per cent in March from 4.78 percent in February, rural inflation saw an uptick.

Rural inflation inched up to 5.45 per cent compared to 4.34 per cent in February.

This disparity between urban and rural inflation rates may reflect variations in consumption patterns and supply chain dynamics across different regions.

The moderation in retail inflation comes amid other positive economic indicators. The Index of Industrial Production (IIP) for March showed robust growth, expanding by 5.7 percent compared to 3.8 per cent in January 2024.

This uptick in industrial activity suggests underlying strength in the economy, potentially contributing to a more balanced inflation outlook.

Overall, the moderation in retail inflation, particularly in food prices, coupled with strong industrial growth, paints a favourable picture of the economy's resilience amidst ongoing global uncertainties.

The latest inflation data comes a week after the RBI's Monetary Policy Committee (MPC) on April 5 announced the decision to keep the policy repo rate unchanged at 6.5 percent for the seventh consecutive time.

RBI Governor had said that the retail inflation projections for FY25 has been reduced to 4.5 per cent from earlier 4.7 per cent.

However, policymakers will continue to closely monitor inflationary trends to ensure stability and sustainable economic growth in the coming months.