Retail inflation slid further to 3% in Apr; easing room for RBI rate cut

Consumer price index (CPI)-based retail inflation is likely to have cooled further in April, remaining below the 4 per cent target of the Reserve Bank of India (RBI) for the third consecutive month.

 

The decline in inflation is expected on account of easing prices across various goods categories, especially food items. 

 

This potentially opens another window for the RBI's monetary policy committee (MPC) to consider further repo rate cuts in its upcoming bi-monthly review meeting in June. 

 

In March, retail inflation stood at 3.34 per cent — the lowest since August 2019.

 

The National Statistics Office (NSO) will release the