Retail inflation at 67-mth low

• DECLINES TO LOWER-THAN-EXPECTED 3.34% DUE TO FOOD PRICE CORRECTION • RAISES HOPES OF FURTHER REPO RATE CUT BY 50 BPS IN THIS CALENDAR YEAR

- DIPAK MONDAL @New Delhi

RETAIL inflation in March fell to lower-than-expected 3.34%, the lowest since August 2019, vindicating the Reserve Bank of India's decision to effect a 25-basis points repo rate cut in the April monetary policy.

The sharp decline in consumer inflation during the month also raised hopes of at least another 50-basis points interest rate cut in the calendar year.