Softening of CPI inflation will boast India’s private final consumption expenditure, the largest component of   GDP. It will further give comfort to RBI to reduce interest rates in the next bi-monthly MPC meeting, which will reduce industries debt burden, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.

The CPI inflation is trending downward with Y-O-Y change of 3.34% in March 2025 compared to March 2024, he said.

Vegetables, Eggs, Pulses & products, Meat & fish, Cereals & Products and Milk & products are were contributors to the decline, said Mr. Hemant Jain.

Moving ahead, CPI inflation is expected to remain well within the RBI’s target band due to predicted normal monsoon, and decreasing international crude oil prices. The crude prices is expected to be range bound between US$60 to US$65 per barrel in the short to medium term further boosting private final consumption expenditure and hence bolstering economic growth, said Mr. Jain.