Overview

• India's retail inflation fell to 3.3% in March 2025, its lowest level since August 2019, according to official data.
• Food inflation dropped to 2.7%, a three-year low, driven by declining vegetable and pulse prices, though edible oil prices remain elevated.
• Core inflation increased to a 16-month high of 4.1%, reflecting rising costs in services, transport, and precious metals.
• The Reserve Bank of India reduced its policy rate to 6% and revised its FY26 inflation forecast downward to 4%, signaling potential further rate cuts.
• Regional disparities in inflation persist, with Kerala recording the highest rate at 6.6%, while rural and urban inflation trends diverged slightly.