India’s wholesale inflation eased to 2.05 percent in March from 2.4 percent in the previous month, according to data released by the government on April 15.
Manufacturing items, which account for nearly two-thirds of the index, witnessed prices rise 3.1 percent compared with 2.9 percent in the previous month, while food index witnessed a further decline.
Falling inflation coupled with prospects of easing growth was one reason that prompted the central bank to deliver its second consecutive 25 bps rate cut in April meeting.
The policy rate now stands at 6 percent compared with 6.5 percent at the start of the year.
The Reserve Bank of India in its commentary lowered India’s growth projection to 6.5 percent for FY26 from 6.7 percent earlier, and inflation forecast to 4 percent from 4.2 percent projected in February.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
