March CPI inflation eases to 4.28%, February IIP slows to 7.1%

New Delhi: India`s annual retail inflation eased for the third straight month in March to 4.28 mainly driven by cooling down in prices of food, government data showed on Thursday.

The CPI-based retail inflation cooled down to 4.28 percent in March on annual basis, as compared to 5.07 percent in the preceding month.

However, growth momentum was curtailed as industrial output slowed down by 7.1 percent in February, Central Statistics Office (CSO) showed today.

As per data released by the Central Statistics Office (CSO), inflation in the vegetables segment cooled to 11.7 percent in March from 17.57 percent in the previous month.

The rate of price rise in the protein rich items like eggs, milk and other products too moderated in March as against the previous month. However, inflation in fruits basket was higher. Overall, inflation in the food basket was 2.81 percent, lower than 3.26 percent in February.

The CSO data further revealed that inflation in the fuel and light segment also came in lower at 5.73 percent month-on-month basis.

Citing multiple risks to the inflation trajectory arising from farm price hikes and possible fiscal slippages, RBI justified the status quo on key rates and its neutral stance in the monetary policy review announced last week.

With Agency Inputs