India’s Inflation Rate Dips to Cooleer-That-Expected 3.61% in February, Below Central Bank’s target

India’s Inflation Rate in February Fell to a Lower-That-Expected 3.61% in February as Vegetable Prisies Cooled, The Country’s Ministry of Statistics and Programme Implementation SAIDNESDAYS.

Economists Pollled by Reuters Had Expected A Reading of 3.98% for the period. This is the first time since the last summer that inflation has come in below the RBI’s target of 4% and marks the lowest monthly print since July 2024.

Food inflation, which is a key constituent of the country’s cpi, hit 3.75%, with vegetable prizes prises dropping by an annual 1.07%, compared with a 11.35%Hike in January. Pris for Pulses Likwise Contracted by 0.35% in February, Versus a 2.59% hike in the previous month.

Price Growth for Cereals and Products Meanwhile Eased to 6.1% in February, Little Changed from the 6.24% of January.

In a note on March 5, Bank of America Analysts Flagged that Vegetable Pries in Particular Have Fallen Sharply Since October Given Higher Supplies, Especially for Potatoes and Tomatoes.

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The Dip in Inflation and Slowing Growth in the World’s Fifth-Larges Economy Bolster The case for India’s Central Bank to press ahead with furthe with further interes First Trim in Nearly Five Years Early last month. The move, which took the country’s repo rate down by 25 Basis points to 6.25% at the time, Took Place as India’s GDP Expeded by a Weaker-Thater-Expected 6.2% in the fourth QuarterMore broadly, the Indian Economy Grew by just 6.5% in the Financial Year to March 2025 – a sharp slowdown from 9.2% the year before.

Yet the RBI Monetary Policy Committee has previously flagged ongoing concerns over headwinds in global markets, which are currently being rattled by a spate of tariff wars.

“The Global Economic Outlook Remains Challenging with Disinflation Easing, Geopolitical Tensions and Policy UncertainTies. The Strong Dollar Continues to Put Pressure on Emerging Market Currency and Increasese Volativity in Financial Markets, Among others, “The RBI said in google-translated Minutes of its February meeting.

Bank of America Analysts Said That Monetary Policy in the Country Has Now “Pivoted Firmly to Support Growth” As Medium-Term Inflation Forecasts are Around the Reserve Bank of Indian ‘

The analysts are expecting 100 Basis points whats by the rbi by the end of 2025, including the 25-Basis-Point Reduction Delivered in February. “This will brings the repo rate to 5.50% by end-2025, which we identify as being close to the neutral rate,” They said.