India: Inflation drops to lowest level since December 2021 in March
Inflation came in at 5.7% in March, which was down from February’s 6.4%. March’s reading represented the lowest inflation rate since December 2021. Looking at the details of the release, prices for food and beverages, plus fuel and light, grew at softer paces in March.
Annual average inflation edged down to 6.7% in March (February: 6.8%).
Finally, consumer prices increased 0.23% in March over the previous month, picking up from February’s 0.17% rise.
Looking ahead, our panelists expect inflation to continue declining this year on a tougher base effect, weakening economic activity and cooling commodity prices. Key factors to watch include this season’s wheat crop, monetary policy, currency fluctuations, the Russia-Ukraine grain deal and changes in export controls for key agricultural commodities.