Retail inflation rises to 2.86% in March

In a poll conducted by CNBC-TV18, March retail inflation was expected to harden to 2.99 percent on month compared to 2.57 percent in February.

Fuel and power inflation is also likely to rise due to a gain in liquified petroleum gas (LPG) prices.  Petrol and diesel prices have also risen by about 1-2 percent.

source: tradingeconomics.com

In the first bi-monthly monetary policy meet of the financial year, the Reserve Bank of India cut the key repo rate by 25 basis points to 6 percent, with retail inflation continuing to remain low and domestic economy showing muted growth prospects. The repo rate is back at 6 percent after a year.

CPI is seen at 2.9 percent in the first quarter of FY20, 3 percent in the second quarter of FY20, 3.5 percent in the third quarter of FY20 and 3.8 percent in the fourth quarter of Q4FY20

CPI is widely used as a macroeconomic indicator of inflation, as a tool by governments and central banks for inflation targeting and for monitoring price stability, and as deflators in the national accounts.