India’s retail inflation eased to a six-year low of 3.16 per cent in April from 3.34 per cent in March, driven by a further moderation in food prices. This marks the third consecutive month that inflation has remained below the Reserve Bank of India’s 4% medium-term target.

A Reuters poll of 43 economists suggested inflation fell to 3.27% in April.

Food inflation, which accounts for nearly half of the Consumer Price Index (CPI) basket, slowed to 1.78 per cent in April, compared to 2.69 per cent in March.

Intense heatwaves this summer did little to affect a robust harvest, offering much-needed relief to many Indian households, which allocate a significant portion of their budgets to food.

Rural inflation cooled to 2.92 per cent in April from 3.25 per cent in March, while urban inflation contracted to 3.36% compared to 3.43 per cent a month earlier.