New Delhi, April 13: The retail inflation in India for the month of March eased to 5.91 percent, said the data released by the Central Statistics Office (CSO) on Monday. As compared to the last month, the inflation figures suggest a downward decline, as the rate had soared to 6.58 percent in February. Year-on-year basis, however, the numbers mark a surge as an inflation of mere 2.86 percent was recorded in March, 2019.

For the past four months, inflation in India is way above the 3-4 percent target set by the Reserve Bank of India (RBI). According to the government press release, the marginal decrease vis-a-vis February is attributed to a drop in food prices in the first three weeks of March. Automobile Sector Feels The Coronavirus Pinch, Reports 18% Drop in Sales in March 2020.

The food inflation deflated to 8.76 percent between March 1-20, as compared to 10.81 percent in February. The data for the period following March 21, when lockdown was imposed in most parts of the nation could not be collated.

"Keeping in view the preventive measures taken by NSO and announcement of nation-wide lockdown by the Government to check spread of COVID-19 pandemic, the field work for price collection of Consumer Price Index (CPI) was suspended with effect from 19th March, 2020 and about 66% of price quotations were received," the government press release said.

The CPI inflation figures are factored in by the central bank while preparing its bi-monthly policy report. The easing or tightening of liquidity - through reduction or relaxation of repo-reverse repo rate - is also determined by the inflation rate. The RBI had, in the wake of coronavirus lockdown, enacted a spree of measures to boost liquidity by Rs 3.74 lakh crore to cope with the economic fallout due to the lockdown.

(The above story first appeared on LatestLY on Apr 13, 2020 06:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).