India's CPI Inflation Eases To 10-Month Low At 4.85% In March, Fuel Prices Lead The Fall

India's retail inflation eased, led by fuel. The Consumer Price Index-based inflation stood at 4.85% in March, as compared with 5.1% in January and February, according to data from the Ministry of Statistics and Programme Implementation, released on Friday.

A panel of economists polled by Bloomberg estimated Consumer Price Index-based inflation at 4.9% for the month. Inflation has been within the central bank's tolerance band of 4% (+/-2%) since September.

Food and beverage inflation came in at 7.68%, as against 7.8% in February.

Fuel inflation was at -3.24% in March, as compared with -0.77% in the previous month.

The headline inflation for March has come in line with expectations. "While core inflation continues to moderate, we remain wary of the heatwaves going ahead, which could keep food inflation elevated and volatile in the summer months," said Upasna Bhardwaj, chief economist, Kotak Mahindra Bank Ltd.

• Cereal prices rose by 8.4%, as against 7.6% in February.

• Inflation in meat and fish was at 6.4%, as against 5.21% in the previous month.

• Inflation in eggs was at 10.3%, as against 10.7% last month.

• Inflation in milk and milk products was at 3.4%, as compared with 3.86%.

• Prices of oils and fats declined 11.7%, as compared with 13.97% in the previous month.

• Vegetable prices rose 28.3%, as against 30.25% last month.

• Pulses inflation rose 17.7%, as compared with 18.9%.

• Clothing and footwear inflation was at 3% versus 3.14% in the previous month.

• Housing inflation was at 2.8% versus 2.88%.