&nbsp;India&rsquo;s annual rate of inflation based on the Wholesale Price Index (WPI) slowed to 2.05% in March, down from 2.38% in February, according to data released by the Ministry of Commerce and Industry on Tuesday.&nbsp;
The positive rate of inflation in March is primarily due to an increase in the prices of manufactured products, the figures showed.
The month-over-month change in WPI for March was in the negative zone at (-) 0.19% as compared to the previous month of February, reflecting the declining trend in inflation. There was a decline in the prices of food as well as fuel and power groups compared to the previous month, which resulted in the overall month-on-month inflation rate turning negative.
Meanwhile, retail inflation has also been on a declining trend. The Reserve Bank&rsquo;s Monetary Policy Committee has reduced its inflation forecast for 2025-26 to 4% from 4.2% earlier as the &ldquo;outlook for food inflation has turned decisively positive,&rdquo; RBI Governor Sanjay Malhotra said last week.&nbsp;
&ldquo;Headline inflation moderated during January&ndash;February 2025 following a sharp correction in food inflation. The outlook for food inflation has turned decisively positive. The uncertainties regarding rabi crops have abated considerably, and the second advance estimates point to a record wheat production and higher production of key pulses over that last year,&rdquo; the RBI Governor said.
He observed that along with robust kharif arrivals, this is expected to set the stage for a durable softening of food inflation.&nbsp;
&ldquo;The sharp decline in inflation expectations in our latest survey for three months and one year ahead would also help anchor inflation expectations, going ahead,&rdquo; he pointed out.
Furthermore, the fall in crude oil prices augurs well for the inflation outlook. Concerns on lingering global market uncertainties and recurrence of adverse weather-related supply disruptions, however, pose upside risks to the inflation trajectory, the RBI Governor said.&nbsp;
He said that taking all these factors into consideration and assuming a normal monsoon, CPI inflation for the financial year 2025&ndash;26 is projected at 4.0%, with Q1 at 3.6%; Q2 at 3.9%; Q3 at 3.8%; and Q4 at 4.4%. He also sees that the risks are evenly balanced.
&mdash;IANS
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RBI lowers 2025-26 inflation forecast to 4% from 4.2% (File Photo)

March's positive inflation rate is mainly due to higher prices of manufactured products

India’s WPI Inflation Drops to 2.05% in March

March's positive inflation rate is mainly due to higher prices of manufactured products

April 15, 2025 | 16:24 IST