India's retail inflation fell below 4% in February for the first time in six months mainly due to a decline in vegetable prices, giving the central bank room to cut rates further in coming meetings. Annual retail inflation in February eased to 3.

The report also noted that the decline in WPI inflation is primarily driven by a reduction in vegetable prices, a major contributor to food inflation

The CPI inflation print for February falls below the mid-point of the MPC's medium term target range, led by cooling in food inflation