Wholesale inflation in India dips to 2.1% in March
What's the story
India's wholesale inflation has fallen to 2.1% in March, down from 2.4% in February, as per government data released today.
The manufacturing sector, which makes up almost two-thirds of the index, witnessed a price rise of 3.1%, as against a 2.9% rise in February.
Meanwhile, food prices witnessed a further decline during the period.
Rate reduction
RBI's policy rate cut influenced by falling inflation
The recent fall in inflation and the expected slowdown in growth were major reasons why the Reserve Bank of India (RBI) went for its second consecutive 25 basis points rate cut in April.
The policy rate now stands at 6%, down from 6.5% at the start of this year.
The move is expected to boost economic activity by making borrowing cheaper for businesses and consumers.
Forecast adjustments
RBI revises growth and inflation forecasts
In its latest commentary, the RBI has lowered India's growth projection for FY26 to 6.5% from an earlier estimate of 6.7%.
It has also lowered the inflation forecast to 4% from a previous prediction of 4.2% in February.
These revisions indicate the central bank's response to changing economic conditions and its continued efforts to maintain price stability while supporting economic growth.