India's retail inflation logs 3.34% in March 2025, nearly 6-year low

Retail inflation eased to a 5.5 year-low of 3.34% in March 2025, from 3.61% in the previous month, mostly attributable to lower food prices, according to data from the Ministry of Statistics and Programme Implementation.

The Consumer Price Inflation (CPI) was significantly lower than the Reuters estimate of 3.6%.

The slowing prices comes following two consecutive repo rate — the rate at which banks borrow from the RBI — cuts of 25 basis points (bps) each by the Reserve Bank of India.

“The softer than expected CPI inflation will provide further comfort to RBI to continue to prioritise growth. We retain our view that RBI will continue on its accommodative stance with the terminal repo rate likely around 5-5.25%,” according to Upasna Bharadwaj, Chief Economist, Kotak Mahindra Bank.