Falling vegetable prices pulled down inflation to an over three-year low of 5.96 per cent in March this year. This is much lower than the Reserve Bank’s projection of 6.8 per cent. Inflation based on the Wholesale Price Index had stood at 6.84 per cent in February this year, and at 7.69 percent in March last year.
According to official data released today, inflation in the manufactured items category declined to 4.07 per cent in March, from 4.51 per cent in February. Inflation in food articles fell to 8.73 percent in March, from 11.38 per cent in February. Inflation in vegetables fell sharply to minus 0.95 per cent in March, from 12.11 per cent in February. Inflation in rice eased to 17.9 per cent in March, against 18.84 per cent in February. And inflation for January was revised upwards to 7.31 per cent, from 6.62 per cent as per provisional estimates.