Retail inflation slowed to 4.28 per cent in March, the third consecutive month of decline, mainly on account of easing food prices including vegetables, government data showed today. The inflation based on Consumer Price Index (CPI), a key data factored in by the RBI to arrive at interest rate, was 4.44 per cent in February. However, the March 2018 inflation is higher than 3.89 per cent recorded in the same month last year.

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As per data released by the Central Statistics Office (CSO), inflation in the vegetables segment cooled to 11.7 per cent in March from 17.57 per cent in the previous month.

The rate of price rise in the protein rich items like eggs, milk and other products too moderated in March as against the previous month. However, inflation in fruits basket was higher.

Overall, inflation in the food basket was 2.81 per cent, lower than 3.26 per cent in February. The CSO data further revealed that inflation in the fuel and light segment also came in lower at 5.73 per cent month-on-month basis.

Separately, India`s annual industrial output grew 7.1 percent in February, data released on Thursday showed, in line with 7.0 percent forecast in a Reuters poll.