Retail CPI inflation eases to 7-month low of 3.61% in February; January IIP growth at 5%

Retail inflation or Consumer Price Index (CPI) inflation for the month of February eased to a 7-month low of 3.61%. This is effectively throughout the Reserve Bank of India (RBI’s) consolation zone and can doubtless encourage the Monetary Policy Committee (MPC) to minimize repo price in the April assessment to enhance GDP growth.
The All India Consumer Price Index (CPI) exhibits a year-on-year inflation price of 3.61% (Provisional) for February 2025 in contrast to February 2024. The headline inflation in February 2025 decreased by 65 foundation factors from January 2025, reaching its lowest degree since July 2024.
Food inflation or the All India Consumer Food Price Index (CFPI) signifies a year-on-year inflation price of 3.75% (Provisional) for February 2025 over February 2024. The rural and concrete charges stand at 4.06% and three.20% respectively. Food inflation skilled a considerable lower of 222 foundation factors in February 2025 in contrast to January 2025, marking the bottom degree since May 2023.
In the agricultural sector, February 2025 witnessed a notable decline in each headline and meals inflation. The headline inflation registered at 3.79% (provisional), down from 4.59% in January 2025. The rural CFPI-based meals inflation decreased to 4.06% in February 2025 from 6.31% in January 2025.
The city sector skilled a substantial discount in headline inflation, dropping to 3.32% (Provisional) in February 2025 from 3.87% in January 2025. Food inflation in city areas additionally confirmed an analogous development, declining to 3.20% in February 2025 from 5.53% in January 2025.
January 2025 IIP Data: