India's CPI inflation remains in comfortable range, eases further to 3.16% in April

ANI May 13, 2025 325 views

India's retail inflation eased to 3.16% in April, marking the lowest level since July 2019. The decline was driven by falling food prices, particularly in vegetables and pulses. The RBI has projected stable inflation at 4% for FY25, supported by a normal monsoon forecast. After keeping rates steady for nearly five years, the central bank cut the repo rate in February 2025.

"Inflation is expected to remain under control in FY 2025-26" - RBI Governor Sanjay Malhotra
New Delhi, May 13: Retail inflation in India in April fell to 3.16 per cent from 3.34 per cent in March, showed official data released by the Ministry of Statistics and Programme Implementation on Tuesday.

Key Points

1

April CPI inflation falls to 3.16%, lowest since 2019

2

Food inflation drops to 1.78% due to lower vegetable and pulse prices

3

RBI maintains inflation projection at 4% for FY25

4

Repo rate cut in February 2025 after 11 steady holds

Effectively, headline inflation declined 18 basis points in April 2025 compared to March 2025.

According to the government, it is the lowest year-on-year inflation since July 2019.

The year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for April 2025 over April 2024 is 1.78 per cent (Provisional).

The significant decline in headline inflation and food inflation during the month of April, 2025 is mainly attributed to decline in inflation in vegetables, pulses and products, fruits, meat and fish, personal care and effects and cereals and products.

Retail inflation last breached the Reserve Bank of India's 6 per cent upper tolerance level in October 2024. Since then, it has been in the 2-6 per cent range, which the RBI considers manageable.

Food prices were a concern for Indian policymakers, who wished to sustain retail inflation around 4 per cent.

Inflation has been a concern for many countries, including advanced economies, but India has largely managed to steer its inflation trajectory well. The RBI held its benchmark repo rate steady at 6.5 per cent for the eleventh consecutive time, before cutting it first time in about five years in February 2025.

After the RBI's April monetary policy review meeting, the central bank said that inflation is expected to remain under control in the financial year 2025-26.

The RBI Governor, Sanjay Malhotra, projected the annual Consumer Price Index (CPI) inflation at 4.0 per cent, assuming a normal monsoon. The CPI inflation is expected to be 3.6 per cent in the first quarter, 3.9 per cent in the second quarter, 3.8 per cent in the third quarter, and 4.4 per cent in the fourth quarter, with risks evenly balanced.

Reader Comments

R
Rajesh K.
Good news for common people like us! Lower inflation means our household budgets can breathe a little easier. Hope the government keeps monitoring food prices though - sabzi-mandi rates still feel high in local markets. 🍅🥦
P
Priya M.
As someone who runs a small kirana store, I can see customers are happier when prices stabilize. But I worry this might be temporary relief before monsoon season. RBI should remain cautious about rate cuts.
A
Amit S.
While the numbers look good, ground reality is different in many states. Petrol prices still pinch and education/healthcare costs are rising sharply. CPI basket needs modernization to reflect true household expenses.
S
Sunita R.
Kudos to RBI for maintaining stability! 🇮🇳 This controlled inflation will help middle-class families plan better. Just hope the benefits reach everyone - sometimes cities see relief but rural areas lag behind in price corrections.
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Vikram J.
The numbers are encouraging but let's not celebrate too soon. Global oil prices and monsoon performance can change everything. Government should focus on building better supply chains to prevent sudden price spikes.
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Neha P.
As a young professional, I'm happy about stable inflation but concerned about stagnant salaries. Companies should consider wage revisions when economy is doing well. Cost of living in metros is still very high!

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Tags:
India inflation CPI data RBI food prices Sanjay Malhotra monetary policy