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.

After the decline in retail inflation in February to 3.6 per cent, the March inflation print is also trending below the RBI's 4 per cent target which is likely to lead to another rate cut by the central bank next month,

India's retail inflation, as measured by the Consumer Price Index (CPI), recorded 3.61% in the month of February as compared to 4.21% reported in the year-ago period, showed data released by the National Statistics Office (NSO) on Wednesday (March 12).