Retail Inflation Eases to 3.34% in March, Lowest Since 2019

India's retail inflation cooled to 3.34% in March 2025 — its lowest level in nearly six years — driven by a drop in vegetable and protein-rich food prices. This marks a slight dip from February’s 3.61% and a significant fall from 4.85% in March last year. The last time inflation was this low was in August 2019, at 3.28%.

Food inflation slowed notably to 2.69% in March, down from 3.75% in February and a steep 8.52% in the same month last year, according to data released on Tuesday.

In response to the easing inflationary trend, the Reserve Bank of India slashed the repo rate by 25 basis points last week, aiming to support growth momentum.

For the fiscal year 2025–26, the RBI has pegged average CPI inflation at 4%, with quarterly projections ranging from 3.6% in Q1 to 4.4% in Q4. Risks, it noted, remain evenly balanced.

On the wholesale side, inflation based on the WPI also eased to 2.05% in March — a six-month low — from 2.38% in February. WPI inflation stood at just 0.26% in March 2024. The decline was largely attributed to softening prices of vegetables, potatoes, and other key food items.

(Source: PTI)