Retail inflation declines to 3.16 pc in April as food prices ease
This marks a drop from 3.34 per cent in March 2025 and is the lowest since July 2019, when inflation stood at 3.15 per cent
Retail inflation rate, measured by the Consumer Price Index (CPI), declined to a nearly six-year low of 3.16 per cent in April 2025.
This marks a drop from 3.34 per cent in March 2025 and is the lowest since July 2019, when inflation stood at 3.15 per cent.
The latest figures reflect a sustained moderation in food prices, on account of subdued prices of vegetables, fruits, pulses, and other protein-rich items, and remains within the comfort zone of the Reserve Bank.
Also Read: Wholesale inflation eases to 2.05 pc in March on cheaper food items
Food prices drop
Food inflation fell sharply to 1.78 per cent in April 2025, down from 2.69 per cent in March 2025 and 8.7 percent in April 2024.
A sharp decline of 91 basis point is observed in food inflation in April, 2025 in comparison to March, 2025.
The decline is attributed to reduced inflation in vegetables, pulses, fruits, cereals, meat and fish, and personal care items. April’s food inflation rate is the lowest since October 2021.
Rural, urban trends
Significant decline in headline and food inflation in the rural sector was observed in April, 2025.
In rural areas, headline inflation is 2.92 per cent (provisional) in April, 2025 while the same was 3.25 per cent in March, 2025. The Consumer Food Price Index (CFPI) based food inflation in rural sector is observed as 1.85 per cent in April, 2025 in comparison to 2.82 per cent in March, 2025.
Urban headline inflation also moderated, falling from 3.43 per cent in March, 2025 to 3.36 per cent (Provisional) in April, 2025. Urban food inflation saw a steeper fall — from 2.48 per cent in March, 2025 to 1.64 per cent in April, 2025.
Also Read: Why declining inflation augurs well for India’s economic growth
Category-wise trends
Housing: The year-on-year housing inflation stood at 3.00 per cent in April 2025, marginally lower than 3.03 per cent in March 2025. Notably, the housing index is compiled for urban sector only.
Education: Education inflation rate climbed to 4.13 per cent in April 2025, up from 3.98 per cent in March 2025. This figure represents combined education inflation for both rural and urban sector.
Health: Health inflation rate remained largely stable at 4.25 per cent in April 2025, compared to 4.26 per cent in the previous month. It is combined health inflation for both rural and urban sector.
Transport & communication: This category saw a noticeable uptick, with the inflation rate rising to 3.73 per cent in April 2025 from 3.36 per cent in March 2025. It is combined inflation rate for both rural and urban sector.
Fuel & light: Fuel and light inflation rate more than doubled, reaching 2.92 per cent in April 2025, up sharply from 1.42 per cent in March 2025, based on combined data across rural and urban regions.
Also Read: India’s middle-class falling into debt trap: Saurabh Mukherjea
RBI in comfort zone
The Reserve Bank of India, which has been mandated to ensure inflation remains at 4 per cent with a margin of 2 per cent on either side, is likely to view these numbers favourably.
With inflation easing, the RBI 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.
(With agency inputs)