For the common man, there’s a sigh of relief on the inflation front. Government efforts are paying off, as retail inflation has hit a 10-month low in March. A noticeable drop in the price of food and beverages has contributed to this decline.
According to the latest figures released by the National Statistical Office (NSO) on Friday, the country's retail inflation rate has come down to 4.85% in March from 5.09% in February.
Decline in the Price of Pulses
The food inflation rate, in March, has decreased to 8.52% from 8.66%. Additionally, prices of vegetables and pulses have seen a reduction. Last month, there was also a drop in the prices of footwear.
According to fresh data, urban inflation has decreased from 4.78% to 4.14% month-on-month (MOM). However, there has been an increase in rural inflation, which has gone up from 5.34% in February to 5.45% in March. Inflation for vegetables stands at 28.34% in March, which is a decline from 30.25% in February. Moreover, inflation for pulses has reduced from 18.90% to 17.1% MOM.
Retail Inflation Rate Now Favors RBI’s Stance
It's noteworthy that the Reserve Bank of India (RBI) has continuously taken steps to keep the Consumer Price Index (CPI) based inflation under control. Currently, the retail inflation rate is within the RBI’s target range. The RBI has set a target to maintain the retail inflation rate at 4%, with a margin of 2% on either side, striving to keep it between 2% and 6%.
