Easing food prices brings retail inflation to 3-month low

Core inflation stayed at 4.14 per cent, almost at the February level of 4.15 per cent, with some analysts forecasting it may have bottomed out.

By: ENS Economic Bureau | New Delhi | Updated: April 14, 2015 2:57 am

Consumer price inflation hit a three-month low of 5.17 per cent in March, as food inflation moderated despite expectations to the contrary following damages to crops from unseasonal showers in some states.

Coupled with the negative wholesale-price inflation for four straight months through February, the latest moderation in retail inflation from 5.37 per cent in February has prompted some analysts to expect a rate cut by RBI in its June meeting to push growth.

For FY15, CPI inflation dropped to 6 per cent, against 9.5 per cent a year earlier. Core inflation stayed at 4.14 per cent, almost at the February level of 4.15 per cent, with some analysts forecasting it may have bottomed out.

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However , the fact that core inflation stayed around same level for past two months also suggests persistent weakness in demand-side inflationary pressures. FE

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