New Delhi, March 12 -- Driven by lower food prices, India's retail inflation fell to a seven-month low of 3.61% in February this year from 4.26% in the previous month.
The decline in retail inflation has raised hopes of a further cut in repo rate by the Reserve Bank of India (RBI) in the upcoming monetary policy committee (MPC) meeting.
"The February 2025 CPI inflation print falling well below 4% has cemented the expectation of a back-to-back 25 bps rate cut in the April 2025 MPC meeting. This may be followed by another 25 bps repo rate cut either in the June 2025 or the August 2025 meetings, dependent in large part on the next GDP growth print for Q4 FY2025," said Aditi Nayar, chief economist at research and rating firm ICRA.
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