Consumer price index (CPI) or retail inflation is likely to undershoot the Reserve Bank's target in the January-March 2025 quarter, opening more policy space for easing the policy rate, Bank of Baroda said. India's retail inflation significantly improved in February 2025, as the year-on-year Consumer Price Index (CPI) inflation rate stood at 3.61 percent, a decline of 65 basis points from the previous month. The retail inflation print fell below 4 per cent in February for the first time in six months, mainly due to a decline in vegetable prices.