The worker carries a bag filled with refined wheat flour to load it on a truck in a wholesale market in Colkata, India, on April 10, 2025.
Norfuto Norfuto Gety pictures
The annual inflation rate in India fell to 3.34 % of expected in March.
Reading decreased for the fifth month in a row and came just less than 3.61 % seen in February, with continued growth in food prices. Reuters economists expected to read 3.6 %.
2.69 % of food inflation, a major component of the country’s consumer price index, is 2.69 %. The decrease led by a decrease in the prices of vegetables, spices, eggs and legumes.
Follow inflation data a Reducing the second interest rate in a row By the Reserve Bank in India At its meeting on April 9, the policy price reaches 6 % amid growth concerns in the fifth largest economy in the world.
RBI estimates 4 % inflation-in the middle of its target scope from 2 % to 6 %-for the financial year that ends in March 2026, although it indicated that the basic inflation in February-which excludes food and fuel prices-increases to an increase of 15 months by 4.1 %, driven mostly with an increase in gold prices.
The central bank said last week: “There was a large and wide seasonal correction in vegetable prices. The uncertainty cases in Rabi crops (winter) have been greatly abandoned … along with the strong arrivals (autumn), which is expected to pave this way to softening a solid food inflation.”
More space for price discounts
Inflation data reinforces the RBI case to reduce prices because it seeks to stimulate growth in India, amid the impact of American definitions.
Joe Maher, an economist in London, said: “The largest decline in the expected inflation in the price of Indian consumer in March, which drives it without the goal of the India Reserve Bank (RBI) by 4 %, enhances our view that the central bank will reduce monetary policy slightly more than Consens expects in the coming months,” said Joe Maher, an economist in London.
” In his statement After the policy meeting last week, the central bank will turn its position on a neutral to equal, with the aim of stimulating the economy through more soft interest rates.
GDP in India expands with a weaker 6.2 % expected In the fourth quarter From 2024, the country’s economy It is estimated that you grow 6.5 % In the fiscal year until March 2025 – a sharp slowdown of 9.2 % in the previous year.
The “mutual” definitions will fly directly 0.5 percentage of the full general growth of India for the fiscal year ending in March 2026, according to HSBC. The bank added that there may be indirect second -class effects of factors, including the slower export volumes and the weakest foreign foreign investment flows.
India has been taxed by 26 % of the “mutual” definitions of US President Donald Trump, These duties have been suspended For 90 days last week, leaving 10 % foundation tariffs.
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