November 13, 2025 | 18:13 GMT +7

  • Click to copy
Wednesday- 16:31, 14/05/2025

India's inflation slows to lowest in nearly 6 years, making room for more rate cuts

(VAN) India's retail inflation remained below the central bank's 4% target for the third consecutive month as food prices rose at a slower pace, opening up room for more interest rate cuts.
Customers buy fruits and vegetables at an open air evening market in Ahmedabad, India, August 21, 2023.

Customers buy fruits and vegetables at an open air evening market in Ahmedabad, India, August 21, 2023.

Annual retail inflation (INCPIY=ECI), opens new tab slowed to 3.16% in April from 3.34% in March, marking its lowest level since July 2019 and coming in below economists' estimate of 3.27% in a Reuters poll.

Inflation in food prices in India - which accounts for nearly half of the consumption basket - slowed to 1.78% from 2.69% in March, its lowest since October 2021.

Vegetable prices continued their downward trend, falling 11%year-on-year, compared to a 7.04% fall in March.

"The CPI (consumer price index) print today sets the stage for another rate cut by the RBI in its June policy of 25 basis points," said Sakshi Gupta, an economist at HDFC Bank.

Last month, the Reserve Bank of India (RBI) lowered its key policy rate for a second consecutive time, and signalled more cuts by changing its monetary policy stance to 'accommodative' from 'neutral'.

It cut its GDP growth estimate for the ongoing fiscal year to 6.5% from 6.7% and said it sees inflation at 4%, compared to 4.2% earlier.

Prices of cereals rose 5.35% against a 5.93% increase in March, while those of pulses fell 5.23% compared to a 2.73% fall in the same period.

Core inflation, which excludes volatile items such as food and energy and is a better gauge of domestic demand, steadied at 4%-4.1% in April from 4.1% in the previous month, according to two economists.

"We expect the retail inflation to remain in the range of 3.6% to 3.8% during April-June period on the expectations of a normal monsoon," said Rajni Thakur, an economist at L&T Finance.

H.D

(Reuters)

Cat Ba Biosphere Reserve - The aspiration for global sustainable development

Cat Ba Biosphere Reserve - The aspiration for global sustainable development

(VAN) Cat Ba, a magnificent archipelago in northern Vietnam, has been honored twice by UNESCO.

AGRITECHNICA 2025 aims for sustainable productivity growth

AGRITECHNICA 2025 aims for sustainable productivity growth

(VAN) DLG President Hubertus Paetow affirmed that AGRITECHNICA 2025 will serve as the global hub for the future of sustainable agriculture.

Viet Nam proposes three priorities for ozone layer protection

Viet Nam proposes three priorities for ozone layer protection

(VAN) The Vietnamese delegation proposed three priority areas during the high-level segment of the 37th Meeting of the Parties to the Montreal Protocol (MOP 37) on Substances that Deplete the Ozone Layer.

Sustaining values across generations

Sustaining values across generations

(VAN) Looking back on the 80-year journey, also marking 80 years of the nation’s pursuit of Independence, Freedom, and Happiness, it is clear that agriculture and 'three rural issues', have always held a special place.

EU acknowledges Viet Nam’s outstanding progress in combating IUU fishing

EU acknowledges Viet Nam’s outstanding progress in combating IUU fishing

(VAN) The shared goal of Viet Nam and EU is to create a barrier-free cooperative environment that ensures balanced benefits and a common direction toward sustainable development.

FAO: Viet Nam pioneers green, low-emission agriculture

FAO: Viet Nam pioneers green, low-emission agriculture

(VAN) FAO Representative in Viet Nam stated that the country not only ensures domestic food security but also helps shape a sustainable global food system.

A steadfast journey toward a green future

A steadfast journey toward a green future

(VAN) Vietnam’s environmental sector affirms its pioneering role in protecting natural resources, maintaining ecological balance, and advancing sustainable, green, and harmonious national development.

Read more