Retail inflation after wholesale also moderates; hits six-year low of 3.34%

New Delhi| Retail inflation declined marginally to 3.34 percent in March compared to 3.61 percent in February. This has been confirmed in government data released on Tuesday. Retail inflation declined marginally to a near-six-year low of 3.34 percent in March as prices for vegetables and protein-rich foods moderated.

Consumer Price Index (CPI) based inflation was 3.61 percent in February and 4.85 percent in March last year. The retail inflation rate in March 2025 was the lowest since August 2019. At that time it was 3.28 percent.

What came out in the inflation figures?
Food inflation was 2.69 percent in March, compared to 3.75 percent in February and 8.52 percent in March 2024. Last week, the Reserve Bank had announced a cut of 25 basis points in the key short-term lending rate, namely the repo rate, in view of the declining inflation.

RBI has estimated retail inflation to be 4% in 2025-26
The Reserve Bank has estimated the CPI based retail inflation rate at 4 percent for the current financial year 2025-26. Inflation is projected to be 3.6 per cent in the first quarter, 3.9 per cent in the second quarter, 3.8 per cent in the third quarter and 4.4 per cent in the fourth quarter. According to RBI, inflation risks are equally balanced.

Meanwhile, wholesale price-based inflation also fell to a six-month low of 2.05 percent in March as prices of vegetables, potatoes and other food items plummeted, according to government data released on Tuesday. Wholesale Price Index (WPI) based inflation was 2.38 percent in February. In March last year, it was 0.26 per cent.