India's Retail Inflation Drops to 3.34% in March 2025

On 15th April, the retail inflation rate for March reached 3.34%, supported by a decline in vegetable, lentil, and egg prices. This is the lowest inflation rate since August 2019. In February this year, the retail inflation rate was 3.61%.

In Telangana, the retail inflation rate has dropped to 1.06%, while in Delhi, it stands at 1.48%. With the consistent softening of retail inflation, there is an expectation of a reduction in the RBI bank rate in the upcoming June month. In March, the retail inflation rate for food items stood at 2.69%, compared to 3.75% in February.

According to government data, in March this year, the prices of vegetables declined by 7.04%, lentils by 2.73%, spices by 4.92%, and eggs by 3.16%, compared to last year. However, the prices of vegetable and cooking oils saw a rise of 17.07% compared to March of last year.

Will Inflation Rise Due to Summer Heat?

The prices of grains rose by 5.93%, milk and dairy products by 2.56%, sugar by 3.89%, and fruits by 16.27%. According to Ikra's Chief Economist Aditi Nair, with rising temperatures, the prices of perishable items could increase, though a normal monsoon is expected this year. She believes that given the current situation, there is a higher possibility of RBI cutting the bank rate in June.

Highest Inflation in Kerala and Karnataka

The highest inflation rates are seen in Kerala and Karnataka. In March, the national retail inflation rate stood at 3.34%, but in Kerala, it was 6.59%, and in Karnataka, it was 4.44%. Retail inflation in Chhattisgarh and Jammu & Kashmir reached 4%. Other states saw varying inflation rates: Bihar at 3.11%, Haryana at 3.81%, Uttar Pradesh at 3.01%, Uttarakhand at 3.78%, Jharkhand at 2.08%, Punjab at 3.65%, and Madhya Pradesh at 3.12%.