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India’s Retail Inflation Falls to 3.34% in March 2025, Lowest in Over 5 Years.

Economy Business | Dated: 22 Apr 2025

In April 2025, India’s retail inflation, as measured by the Consumer Price Index (CPI), fell to 3.34% in March 2025, marking the lowest inflation rate in over five years, since August 2019. The decline from 3.61% in February 2025 is largely due to a substantial reduction in food prices, particularly vegetables, eggs, and pulses.

🎯 Key Highlights:

  • - India has witnessed a steady fall in inflation over the last three financial years (FY), easing from 6.7% in FY23, to 5.4% in FY24, and further to 4.6% in FY25, reflecting sustained disinflationary momentum.
  • - In March 2025, food inflation dropped to 2.69%, down from 3.75% in February, marking the lowest level since November 2021. Urban food inflation stood at 2.48%, while rural areas recorded 2.82%, reflecting an overall cooling of food prices.
  • - Core inflation, which excludes food and fuel components, edged up to 4.1%. This increase was mainly driven by a rise in costs related to gold, transportation, and education, indicating price pressures in essential services.

💡 Other Important Facts:

  • (i) India’s wholesale price inflation (WPI) also eased, falling to a six-month low of 2.05%. This decline points to a broader disinflationary trend in the economy, suggesting price stability across multiple sectors.
  • (ii) Among items with the highest year-on-year inflation in March 2025, the top five were: coconut oil (56.81%), coconut (42.05%), gold (34.09%), silver (31.57%), and grapes (25.55%).
  • (iii) On the other hand, the steepest decline in prices was seen in: ginger (-38.11%), tomato (-34.96%), cauliflower (-25.99%), jeera (-25.86%), and garlic (-25.22%), showing relief in essential kitchen items.

📚 Test Your Knowledge:

Recently, India’s retail inflation for March 2025 dropped to what percentage, marking the lowest since August 2019?

Correct Answer: 3.34%

🚀 Quick Recap: