Retail inflation in India, measured by the Consumer Price Index (CPI), was 3.61% in February, a sharp decline from 4.31% in January, according to figures issued on Wednesday by the Ministry of Statistics & Programme Implementation. This represents a decrease of 65 basis points from January 2025. After July 2024, this is the lowest inflation rate to date. October had a 14-month high of 6.21% CPI inflation.
According to the All India Consumer Food Price Index, the YoY inflation rate for February 2025 compared to February 2024 is 3.75% (Provisional). According to the NSO data, the corresponding inflation rates for rural and urban areas were 4.06% and 3.20%, respectively. Compared to January 2025, food inflation dropped by 222 basis points in February. February has the lowest food inflation since May 2023.
While headline and food inflation in the rural sector was 4.59 percent in January 2025, it significantly decreased to 3.79 percent (provisional) in February 2025. In February 2025, the provisional urban inflation rate was 3.32 percent, up from 3.87 percent in January 2025.
Inflation for pulses and products was 0.35% in February compared to 2.59% in January, while vegetable inflation fell sharply to -1.07 % in February from 11.35% in January. The inflation rate for milk and products was 2.68%, whilst the inflation rate for cereals and products was 6.10%. Inflation for fuel and light was -1.33 %.
NSO data shows that while clothes and footwear inflation was steady at 2.68 percent, housing inflation increased to 2.91 percent in February from 2.76 percent in January. In February, health and education inflation rates were 4.12% and 3.83%, respectively.
