India’s latest inflation data has landed like a cool breeze in the sweltering summer of economic uncertainty. Retail inflation easing to 3.34 per cent in March ~ its slowest pace in over five years ~ is not just a statistical milestone. It signals a broader shift in the economic landscape, where falling food prices and subdued core inflation could empower the Reserve Bank of India (RBI) to loosen monetary policy further. But while this downward trend opens a window for more rate cuts, it also places the RBI at a delicate crossroads between domestic stimulus and global caution. The sharp decline in food inflation to 2.69 per cent, driven notably by a 7 per cent fall in vegetable prices, is a striking reversal from the volatility that plagued much of the previous year.

The impact of this moderation will be most felt by the average Indian household, where food constitutes a large share of monthly expenses. Lower inflation........

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