Government data released on May 13, 2025, indicated that India’s retail inflation has eased to 3.16 per cent in April, recording the lowest year-on-year rate since July, 2019. The decline is attributed to a slowdown in food prices, mainly vegetables, fruits, pulses, and other protein-rich items, and remains within the comfort zone of the Reserve Bank and a positive sign for the economy.
The Consumer Price Index (CPI) based inflation was 3.34 per cent in March and 4.83 per cent in April 2024. It was 3.15 per cent in July 2019.
Food inflation in April was 1.78 per cent, lower than 2.69 per cent in the preceding month and 8.7 per cent in the year-ago month.
The Reserve Bank, which has been mandated to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side, has slashed the key interest rate by 50 basis points in two tranches as the price situation improved.
The central bank has projected the CPI inflation for the financial year 2025-26 at 4 per cent, with Q1 at 3.6 per cent; Q2 at 3.9 per cent; Q3 at 3.8 per cent; and Q4 at 4.4 per cent.
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