India’s consumer inflation fell to record low in March and inflation-linked to the Indian rupee has eased in April.
In a statement, the Reserve Bank of India (RBI) said the consumer price index (CPI) for March, which measures the price of goods and services, rose by 3.7 per cent to 32.6 per cent.
That was up from 30.3 per cent in February.
The CPI, which is a measure of inflation based on a basket of consumer items, also showed a slight decline in April to 32,903 from 32,975 in March.
The CPI is a key gauge for gauging economic growth, which shows the level of inflation.
While the CPI data has been volatile in the past, this is the first time the consumer inflation index has been lower than the official GDP growth figure.
This is due to the fact that India has set aside a huge amount of capital in its economy.
The RBI’s announcement came as Prime Minister Narendra Modi launched the Goods and Services Tax (GST) on April 1.
The GST, which will tax goods and service transactions, is expected to benefit a lot of the poorest Indians.
The central bank’s statement also said that the CPI for April rose by 2.4 per cent and for May rose by 4.4 percent.
It said the CPI has now crossed the central bank-set benchmark of 33.1 per cent for March.
In April, the government raised the minimum purchase price for food and beverages by 10 per cent from the previous March and by 10.4% from the March.
The inflation-adjusted consumer price indices have been falling in recent months.
In March, consumer prices for basic foodstuffs such as rice, flour, pulses and eggs fell by 3 per cent, 2.3 and 2.6 percentage points respectively.
The consumer price inflation in April was 5.7 to 7.6 percent.
The rise in consumer inflation has come after the government announced a new scheme that will help farmers to make payments to farmers with reduced interest rates.
In a move that was welcomed by many farmers, the Finance Ministry has said the scheme will help them to reduce their interest costs and repay their loan to the government at a lower rate.