Overview

• India's retail inflation fell to 3.34% in March, its lowest level since August 2019, driven by significant drops in food prices such as vegetables, eggs, and pulses.
• Wholesale inflation in India also eased to 2.05% in March, reflecting a broader trend of declining price pressures across food and fuel categories.
• The Bank of India has adopted an accommodative monetary policy, cutting the repo rate by 25 basis points on April 9, with further reductions anticipated in June.
• In the UK, inflation fell to 2.6% in March, aided by lower fuel costs, but April's utility and council tax hikes are expected to drive inflation higher in the coming months.
• India's inflation outlook remains stable due to forecasts of a normal monsoon and robust agricultural output, while the UK faces uncertainties from global trade tensions and rising living costs.