India's inflation rate falls to three-month low

Floating vegetable market in India Image copyright AFP
Image caption Better weather has stabilised India's food prices

India's inflation rate fell to a three-month low last month, official figures have shown.

Inflation as measured by the Consumer Price Index (CPI) fell to 5.17%, down from February's figure of 5.37%.

Better weather has meant agricultural harvests have been more controllable, stabilising the price of food.

The dip in global oil prices also helped lower the rate, which is in line with the government's aim of keeping inflation below 6%.

Analysts had forecast a rate of about 5.5% for March. In February, unseasonal rains had pushed up food prices.

India's central bank has cut interest rates twice this year with its key rate now at 7.5%. Analysts say the bank could act again.

Economist at Capital Economics Shilan Shah said: "This has raised the possibility of an interest rate cut outside the scheduled review cycle for the third time this year."

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