India's February consumer inflation likely eased below the Reserve Bank of India's medium-term target of 4.0% for the first time in six months on moderating food price rises, a Reuters poll showed, bolstering expectations of interest rate cuts.

India's retail inflation dropped to 3.61% in February, led by lower food prices, marking a seven-month low. The Reserve Bank of India expects further moderation in inflation in fiscal year 2025-26, with projections highlighting a steady decline across the year.

India's retail inflation eased below four per cent to hit a seven month low in February 2025, for the first time in six months driven by a sharp fall in vegetable prices, government data released on Wednesday showed.