March Sees India's Retail Inflation Drop To 5.66 Per Cent, Back Within RBI's Target Range

India’s retail inflation hit a 15-month low of 5.66 per cent in March, according to data by the Ministry of Statistics and Programme Implementation.

Rural inflation in March was 5.51 per cent, and urban inflation was 5.89 per cent. India's Consumer Food Price Index (CFPI) dropped to 4.79 per cent from the previous month's 5.95 per cent.

India's headline inflation based on the consumer price index (CPI) fell to 6.44 per cent in February, but remained above the Reserve Bank of India (RBI)'s tolerance band.

On the other hand, inflation had risen to a three-month high of 6.52 per cent in January 2023, up from 5.7 per cent in December 2022.

In the recent monetary policy, RBI maintained the repo rate at 6.5 per cent. The bank expects a slight ease in CPI inflation to 5.2 per cent during FY2023-24.

India's industrial output witnessed a year-on-year rise of 5.6 per cent in March. According to the Ministry data, the Index of Industrial Production (IIP), indicating factory output, rose by 1.2 per cent in February 2022.

The manufacturing sector's output witnessed a 5.3 per cent growth in February, while mining output grew 4.6 per cent.

February also saw 8.2 per cent increase in national power generation.