Data released on April 12 showed that consumer price inflation eased to 4.28 percent in March from 4.44 percent in February. For 2019, the forecast decreased to 4.07%, from 4.09% last week, after two decreases.
Meanwhile, RAM Ratings said the producer price index (PPI), a forward-looking indicator of consumer price index (CPI) inflation, declined 1.2% and 3.4% in January and February, respectively.
Food articles inflation contracted in March 2018 at 0.29 per cent against 0.88 per cent in the previous month.
According to government data, food articles witnessed deflation after about eight months as vegetables, cereals, pulses, eggs, meat and fish, turned cheaper. The movement in core inflation at the retail and wholesale level were in the opposite direction in March 2018. Similarly, the index for "Non-Food Articles" group declined by 0.3 percent to 120.2 due to lower price of guar seed, floriculture, raw cotton, cottonseed, mustard seed, among others.
Aditi Nayar, Principal Economist, ICRA, said a downturn in food and mineral prices helped to offset the unfavourable base effect and keep the wholesale inflation steady at 2.47 per cent in March 2018.
The index for primary articles (weight 22.62 per cent) declined by 0.5 per cent to 127.4 from 128.0 for the previous month. However, the price of petroleum coke and kerosene moved up.
Manufactured products inflation was at 3.03 per cent, lower than 3.22 per cent in the same month previous year.
Index for "Minerals" group declined by 2.0 percent to 119.7 (provisional) from 122.2 (provisional) for the previous month due to lower price of copper concentrate (14%) and phosphorite (1%).
To remind you, in its first monetary policy review for the fiscal, the Reserve Bank earlier this month maintained status-quo on interest rate citing inflationary concerns.