India’s inflation in March falls on a cooler 3.34%

The annual inflation rate in India has fallen by the lower than 3.34%, according to the Ministry of Statistics and implementation of the country’s program on Tuesday.

Reading fell for the fifth consecutive month and passed just below 3.61% in February. Economists interviewed by Reuters expected to read 3.6%.

Inflation data follow The second straight interest rate By backups of India At its meeting on April 9, attracting its political level up to 6% amid problems with growth in the fifth largest economy in the world.

According to RBI estimates Inflation by 4%-in the middle of the target range from 2%to 6%, ending on March 2026, although it was noted that the main inflation in February excluded the prices for food and fuel to the 15-month maximum by 4.1%, mainly due to gold prices.

“A significant and wide seasonal correction has occurred in the vegetable prices. The uncertainty on cultures (winter) has decreased significantly … Along with the reliable arrival of the chariff (autumn), this is expected to install the soil for a lasting softening of food products,” the Central Bank said last week.

Governor RBI Sanji Malhotra said In his statement After the last week’s policy that the Central Bank moved its position with neutral to reasonable, heading for stimulating the economy through softer interest rates.

India’s GDP expanded weaker than expected 6.2% In the fourth quarter 2024, and the country’s economy is Estimated by 6.5% In the financial year until March 2025 – a sharp slowdown with 9.2% last.

The “mutual” tariffs will directly shave 0.5 percentage points from growth in India for the full year for the financial year, which ends in March 2026, HSBC reports. The bank added indirect and second order from factors, including slower exports and weaker foreign investment flows.

Previously, India was affected by 26% by US President Donald Trump These duties have been rejected For 90 days last week, leaving 10% base.