India's retail inflation eases to 5.66% in March; Feb IIP growth rises to 5.6%

India’s retail inflation or the consumer price index (CPI) for March eased to a 15-month low of 5.66% from 6.44% in February, which is  within Reserve Bank of India’s (RBI) target band of 4%-6%.

India's factory output, based on the Index of Industrial Production (IIP), rose by 5.6% as against 5.2% in January.

According to the National Statistical Office, the inflation in the food basket was 4.79% in March, as against 5.95% in February and 7.68% in the year-ago period.

The retail inflation rose from 5.7% in December 2022 to 6.4% in February 2023 on the back of higher inflation in cereals, milk and fruits and slower deflation in vegetables prices.

Reserve Bank of India has projected the CPI inflation at 5.2% for FY2023-24, with 5.1% in Q1, 5.4% in Q2, 5.4% in Q3, and 5.2% in Q4, and risks evenly balanced.