India’s retail inflation eased to 3.34% in March, the lowest since August 2019, mainly due to a fall in food prices. This marks the second consecutive month that inflation has remained below the Reserve Bank of India’s medium-term target of 4%. Retail inflation was at 3.61% in February.The decline strengthens the case for a third consecutive cut in the policy rate, especially following last week’s change in the monetary policy stance to 'accommodative' from 'neutral'.
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