India's Inflation Cools to 3.61% in February, Hits 7-Month Low

India's retail inflation, as calculated by the Consumer Price Index (CPI), moderated to 3.61% in February 2025, the lowest in 7 months. The steep fall from 4.26% in January was mainly attributed to softening food prices, led by vegetables. Food inflation declined steeply to 3.75% from 6.02% in January. Rural inflation reduced to 3.79%, and urban inflation eased to 3.32%. The surprise fall below the Reserve Bank of India's 4% benchmark leaves the potential for additional rate cuts to facilitate economic growth. Economists see the central bank potentially cutting interest rates by 25 basis points in its April policy meeting, considering the upbeat inflation scenario.

 

Source: Ministry of Statistics and Programme Implementation