Retail inflation in February 2025 slows down to 7-month low of 3.61%

In February, India declined to retail inflation by 3.61% compared to January 4.31% per year, according to the government published on Wednesday.

In February, the decline in the Consumer Price Index (CPI) was mainly attributed to low food prices. Food inflation, which is almost half of the CPI basket, decreased by 3.75% compared to January compared to January. This indicates the lowest food inflation rate since 2023 according to official data.

In February 2025, the plant inflation reached 1.07% a year, significantly lower than the 11.35% increase in January. Grain prices rose by 6,10%, less than 6.24% of January, and pulses saw by 2.59% of the previous month.
In January, rural inflation fell from 4.59% to 3.79%, and urban inflation fell from 3.87% of the previous month by 3.32%.

“Compared to February 2025, compared to 2025, there are a decline of 65 basic points in 2025.

Significant decline in inflation in the urban sector, January 2025, January 2025, from January 2025, from 3,325% (temporary).

In terms of housing inflation, for February 2025, the year’s interest rate was 2.91%, which is slightly higher than 2.82% relevant interest rate.

RBI inflation worldview

In February, the Reserve Bank of the Indian Monetary Policy Commission noted that inflation has decreased due to positive prospects for food prices and is projected to continue to decline in FY26. The goal of RBI is to maintain inflation in the target range of 2-6%.

The Central Bank predicted that inflation will be 4.2% for 2025-26 financial year. The RBI monetary policy committee (MPC) expects inflation to be 4.5% in the first quarter, 4% of the second quarter, 3.8% in the fourth quarter, 4.2%, evenly distributed in the fourth quarter.

The newly appointed RBI Governor Sanjay Malhotra said that in October 2024 inflation fell 6.2% to its top to November-December. This decline can be attributed to the drop in plant prices. The forecasted price for CPI for 2024-25 is 4.8%, and 2025-26 expectation of further moderation, taking on the normal monsoon season.