CPI Knowledge: India’s retail inflation eases to three.61 per cent in February

Persevering with the downward pattern, retail inflation fell to a seven-month low of three.61 per cent in February primarily because of the decline within the price of worth rise in greens and protein-rich gadgets, creating house for the Reserve Financial institution of India (RBI) for the second discount in rate of interest subsequent month. 

The Shopper Worth Index-based retail inflation was 4.31 per cent in January and  5.22 per cent in December.

The earlier low inflation was in August 2024 at 3.65 per cent. The Shopper Worth Index has been on a decline since October.

The year-on-year inflation price for February 2025 was 3.75 per cent, confirmed the info launched by the Nationwide Statistics Workplace (NSO).

“A pointy decline of 222 foundation factors is noticed in meals inflation in February 2025 compared to January 2025. The meals inflation in February 2025 is the bottom after Could 2023,” it stated.

The NSO stated the numerous decline in headline inflation and meals inflation throughout February is principally attributed to the decline in inflation of greens, egg, meat, and fish, pulses and merchandise; and milk and merchandise.

The RBI, which has been mandated to make sure retail inflation stays at 4 per cent (+/- 2 per cent), has lowered the short-term lending price (repo) by 25 foundation factors final month on easing considerations on the inflation entrance.

The central financial institution is scheduled to announce the following set of bi-monthly financial coverage on April 9.

Earlier, retail inflation for farm and rural employees eased barely to 4.61 per cent and 4.73 per cent, respectively, in January from 5.01 per cent and 5.05 per cent in December 2024.

The All-India Shopper Worth Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 4 factors and three factors, respectively, for the month of January 2025, reaching 1,316 and 1,328 factors, the labour ministry stated in an announcement.

In response to the assertion, the CPI-AL and CPI-RL stood at 1,320 factors and 1,331 factors, respectively in December 2024.

“The year-on-year inflation charges primarily based on CPI-AL and CPI-RL for the month of January, 2025 had been recorded at 4.61 per cent and 4.73 per cent, respectively, in comparison with 7.52 per cent and seven.37 per cent in January, 2024. The corresponding figures for December, 2024 had been 5.01 per cent for CPI-AL and 5.05 per cent for CPI-RL,” it said.

The meals index for CPI-AL decreased from 1,262 factors in December to 1,255 factors in January this 12 months.

Equally, meals index for CPI-RL declined from 1,269 factors in December to 1,261 factors in January.

With PTI inputs