Retail inflation has come close to the RBI's medium-term target of 4 per cent, after which the central bank will be in a position to cut key interest rates to boost economic growth.
The country's CPI inflation was 5.09 percent in February and 5.1 percent in January.
The falling trend in cooking oil prices continued in March and it declined by 11.72 per cent during the month. The price rise of spices declined from 13.28 per cent in February to 11.4 per cent in March.
Inflation in pulses also slowed down to 17.71 percent during the month, which was 20.47 percent in January.
However, data shows that vegetable prices rose by 28.34 per cent in March, which continues to pose a problem for consumers. Grain prices also increased by 8.37 percent during the month.
Consumer price inflation is still above the RBI's medium-term target of 4 percent and is the main reason why the central bank has not cut interest rates to boost growth.
The RBI is keen to keep inflation under control to ensure stability and has kept the repo rate steady at 6.5 per cent for seven consecutive times in its bi-monthly monetary policy review.
The RBI, in its monetary policy review on April 5, said it expects inflation to decline to 4.5 per cent in 2024-25 assuming a normal monsoon this year.
Going forward, the inflation trajectory will be shaped by the evolving fu inflation outlook. Rabi sowing has crossed last year's level. RB said the usual seasonal improvement in vegetable prices continued, albeit unevenly.
The country's CPI inflation was 5.09 percent in February and 5.1 percent in January.
The falling trend in cooking oil prices continued in March and it declined by 11.72 per cent during the month. The price rise of spices declined from 13.28 per cent in February to 11.4 per cent in March.
Inflation in pulses also slowed down to 17.71 percent during the month, which was 20.47 percent in January.
However, data shows that vegetable prices rose by 28.34 per cent in March, which continues to pose a problem for consumers. Grain prices also increased by 8.37 percent during the month.
Consumer price inflation is still above the RBI's medium-term target of 4 percent and is the main reason why the central bank has not cut interest rates to boost growth.
The RBI is keen to keep inflation under control to ensure stability and has kept the repo rate steady at 6.5 per cent for seven consecutive times in its bi-monthly monetary policy review.
The RBI, in its monetary policy review on April 5, said it expects inflation to decline to 4.5 per cent in 2024-25 assuming a normal monsoon this year.
Going forward, the inflation trajectory will be shaped by the evolving fu inflation outlook. Rabi sowing has crossed last year's level. RB said the usual seasonal improvement in vegetable prices continued, albeit unevenly.
