Retail inflation fell in march

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Retail inflation fell in march as compared to four-months
     
 India’s retail inflation is expected to have dropped to a four-month low in March 2020 on softer food and fuel prices and as already slowing demand likely plummeted due to a lockdown towards the end of the month, a Reuters poll found. Price pressures will probably ease further this month as economic activity ground to a halt after imposing a 21-day lockdown from March 25 in an attempt to curb the spreading of the corona virus COVID-19.
        Inflation will continue to edge lower. Perhaps, at a faster rate than we had earlier expected. Inflation is likely to have eased to 5.93% last month from 6.58% in February 2020. If realized, it would be the lowest since November 2019, but still closer to the higher end. 
        In future, Economic experts expect that, there can be continued and sizeable drop in food prices. Also, the core inflation fell with social distancing impacting the transport, communication and recreational component of the service sector. Falling in the prices of crude oil will also lead to inflation in near future. A separate Reuters poll of economists showed Asia’s third-largest economy likely expanded at its slowest pace in eight years in the quarter ending March and would slow further this quarter.
        To combat the slowdown, the government announced around Rs 1.7 lakh crores stimulus plan, making direct cash transfers and implementing food security measures to give relief to millions of poor hit by the lockdown. Inflation would give the RBI, reason to cut borrowing costs further but some economists do not expect that to be the driver of policy for now.
       Also, by this lockdown many small business, shops in retail sector are facing huge losses and having burden of borrowing costs and less working capital.

So, let see what will be happened in future.


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