Retail inflation eases to 5.91% in March

Government data released today said that the retail inflation slowed to 5.91 per cent in March 2020 over the previous month. It eased mainly due to easing food prices. The retail inflation based on the Consumer Price Index (CPI) was 6.58 per cent in February 2020 and 2.86 per cent in March 2019.

The inflation in the food basket was 8.76 per cent in March 2020, lower from 10.81 per cent in the previous month, as per the CPI data released by the National Statistical Office (NSO).

Inflation for vegetables for March stood at 18.63 per cent against 31.61 per cent in February. The inflation rate in cereals and products stood at 5.30 per cent in March against 5.23 per cent of February. Same was the case of pulses and products, where the inflation eased to 15.85 per cent in March against 16.61 per cent of the previous month.

Prices of fuel and light category came in at 6.59 per cent against 6.36 per cent a month ago.

The Reserve Bank of India (RBI) mainly factors in retail inflation while deciding its bi-monthly monetary policy. The RBI, earlier in on March 27, 2020, slashed the repo rate by 75 basis points (bps) to 4.40 per cent from 5.15 per cent.

The government has mandated the central bank to keep inflation at around 4 per cent.