Inflation eases to 3.61%; boosts hope for rate cut in April

The Consumer Price Index (CPI) based inflation, which the RBI monitors for its policy rate action, declined below the central bank’s medium-term target of 4per cent for the first time in six months.

Vegetable prices fell 1.07% year-on-year, compared with an 11.35% increase in January.

India’s headline retail inflation eased to a seven-month low of 3.61% in February, helped by a sharp decline in food price rise, providing room for the Reserve Bank of India (RBI) to cut interest rates in April, as per data released by the National Statistics Office (NSO) on Wednesday.

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