Retail inflation declined to 4.85 percent in March due to fall in food prices

Retail Inflation: Retail inflation fell to a 10-month low in March after a decline in food prices. Retail inflation rate has been recorded at 4.85 percent in March. Which was 5.09 percent in February. Economists had expected inflation to be 4.91 percent in March. According to RBI, in the last financial year the inflation figures were recorded between 2-6 percent.

Food prices fell

According to the data of the National Statistics Office, the inflation rate of food items was recorded at 8.52 percent in March. Which was 8.66 percent in February. Official figures have not yet been released by the government as they are awaiting approval from the Election Commission. Lok Sabha elections 2024 are going to start from April 19 in seven phases.

industrial production increased

Industrial activities have intensified in the country. As a result, industrial production increased by 1.9 percent to 5.7 percent in February. Which was 3.8 percent in January. IIP growth of eight major products increased. It includes activities in manufacturing, mining and utility segment industries.

Elephant in the room: RBI

Reserve Bank of India Governor Shaktikanta Das addressed inflation with the elephant in the room at the monetary policy meeting, meaning the elephant in the room has come under control. The RBI has retained the inflation forecast for the current financial year at 4.5 per cent due to supply chain challenges due to the Red Sea crisis and rising crude oil prices.

Vegetables and pulses became cheaper, grains became expensive.

Inflation rate on food grains has been recorded at 8.37 percent in March as compared to 7.60 percent in February. Whereas the prices of vegetables have declined by 28.34 percent and the inflation rate on pulses has been recorded at 17.71 percent. The inflation rate of edible oil improved to -11.72 percent in March compared to -13.97 percent in February.

Retail inflation rate has decreased in the last 3 months