Lower food prices drag down CPI inflation

Lower food inflation dragged down the headline Consumer Price Index (CPI) inflation to 3.3% in March, the lowest print since August 2019.

Food inflation fell to 2.7%, compared with 3.7% in February, driven by cheaper vegetables and pulses. Vegetable prices fell sharper than usual this winter season, driving the decline in food inflation in the last few months.

Non-food (fuel plus core) inflation edged up in March to 3.8% from 3.5% in February, driven by fuel inflation, which accelerated to 1.5% from -1.3% as the base turned adverse. Core inflation was stable at 4.1%.