India’s CPI stands for the fourth consecutive month, lower since August 2024

The inflation rate of India in February fell to a 3.61% lower than expected in February, the Ministry of Statistics and implementation of the country’s program said Wednesday.

Economists surveyed by Reuters expected a reading of 3.98% for the period. This is the first time since last summer that inflation has reached below the objective of the 4% RBI and marks the lowest monthly printing since July 2024.

Food inflation, which is a key component of the country’s CPI, reached 3.75%.

In a note on March 5, Bank of America analysts marked that the prices of vegetables in particular have fallen abruptly since October received higher supplies, especially for potatoes and tomatoes.

“We hope that the correction in vegetable prices will begin to reverse, possibly as soon as March, with risks of heat waves and interruptions related to crops to the crops,” they added.

Wednesday inflation data occurs after GDP growth in India Only lost expectations For the fourth quarter, reaching 6.2%. During the financial year until March 2025, the economy is expected to have grown by 6.5%, a strong deceleration of 9.2% of the previous year.

Bank of America analysts said that monetary policy in the country has now “firmly turned to support growth”, since medium -term inflation forecasts are around the 4% target of the Indian reserve bank.

Analysts expect 100 basic cuts of cuts by the RBI by the end of 2025, including the 25 -base reduction Delivered in February. “This will carry the repository rate to 5.50% at the end of 2025, which we identify as close to the neutral rate,” they said.

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