New Delhi: Retail inflation has seen a slight decrease, reaching a near six-year low of 3.34% in March, attributed to falling prices of vegetables and protein-rich foods.

In comparison, the Consumer Price Index (CPI) inflation stood at 3.61% in February and 4.85% in March of the previous year.

This March's inflation rate marks the lowest since August 2019, when it was recorded at 3.28%.

Food inflation for March was reported at 2.69%, down from 3.75% in February and significantly lower than 8.52% in March 2024.

Recently, the Reserve Bank of India lowered the key short-term lending rate (repo) by 25 basis points, responding to the easing inflation.

The Reserve Bank forecasts CPI inflation for the fiscal year 2025-26 to average around 4%, with quarterly projections of 3.6% for Q1, 3.9% for Q2, 3.8% for Q3, and 4.4% for Q4, indicating balanced risks.

Additionally, wholesale price inflation has dropped to a six-month low of 2.05% in March, driven by reduced prices of vegetables, potatoes, and other food items, according to government data released on Tuesday.

In February, wholesale price index (WPI) inflation was at 2.38%, while it was only 0.26% in March of the previous year.