MUMBAI: Subdued food prices in February pulled down retail inflation below Reserve Bank’s median target of 4% while the country’s manufacturing sector pushed the key factory output index to 5% in Jan, showed data released by the government on Wednesday.
The sharp decline in inflation has raised the prospects for another rate cut by Reserve Bank of India on April 9.
If RBI reduces rate next month, it will be the second rate cut in two months.
CPI-based retail inflation slipped to seven-month low of 3.61% in Feb mainly due to easing prices of vegetables, eggs, and other protein-rich items, creating space for the RBI to go for another cut in interest rate next month.
