(MENAFN) India's retail inflation unexpectedly slowed despite crop damage from unseasonal rains, boosting the possibility that central bank governor will cut rates, Gulf Times reported.
Consumer prices rose 5.17 percent in March compared to the same period a year earlier after a 5.37 percent increase in February, the Statistics Ministry said in a statement in New Delhi.
Even though India's inflation has slowed from an average of 6.7 percent last year, it's still the second-fastest in Asia after Indonesia. Consumer food price inflation eased to 6.14 percent in March.
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"All the signs are positive in terms of future decreases in interest rates from the RBI. A mid-term cut in the interest rate cannot really be ruled out," chief economist at CARE Ratings said.
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