Retail inflation eases to a seven month low of 3.61% in February

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| Photo Credit: Reuters

India’s CPI inflation slipped to a seven-month low of 3.61% in February 2025, beating the Reuters estimate of 3.98%, mainly due to the decline in the rate of price rise in vegetables and protein-rich items, creating space for the Reserve Bank of India for a second reduction in interest rate next month.

The easing annual change in general price level comes on a slump in Consumer Food Price Inflation to 3.75% in February.

The easing annual change in general price level comes on a slump in Consumer Food Price Inflation to 3.75% in February 2025. This number was 5.97% in January.

“A sharp decline of 222 basis points is observed in food inflation in February 2025 in comparison to January 2025. The food inflation in February 2025 is the lowest after May 2023,” it said.

The NSO said the significant decline in headline inflation and food inflation during February is mainly attributed to the decline in inflation of vegetables, egg, meat, and fish, pulses and products; and milk and products.

The RBI, which has been mandated to ensure retail inflation remains at 4% (+/- 2%), reduced the short-term lending rate (repo) by 25 basis points last month on easing concerns on the inflation front.

The central bank is scheduled to announce the next set of bi-monthly monetary policy on April 9.

(With inputs from PTI)