Overview

• India's retail inflation fell to 3.34% in March, the lowest since August 2019, driven by declining food prices, including vegetables and protein-rich items.
• Canada's annual inflation rate eased to 2.3% in March, defying expectations, due to lower gasoline and travel costs, but core inflation remains elevated.
• The Reserve Bank of India projects a durable softening of food inflation due to robust agricultural outputs and declining inflation expectations.
• Trade tensions, including U.S. tariffs on imports from India and Canada, continue to create economic uncertainties and may impact future inflation trends.
• The Bank of Canada faces a challenging monetary policy decision, balancing easing inflation with risks from tariffs and slowing economic growth.