Union Financial institution of India, ETCFO

New Delhi: The meals inflation in India probably fell under 5 per cent for the primary time since June 2023, says a report by Union Financial institution of India.

The report additionally famous that the India’s general retail inflation is anticipated to have slowed down additional in February 2025, falling under the 4 per cent mark, primarily resulting from a decline in vegetable costs.

It stated “Meals inflation has most likely come under the 5 per cent ranges for the primary time after June’23”.

The report estimated that the Client Worth Index (CPI) inflation dropped to three.94 per cent in February, in comparison with 4.31 per cent in January 2025.

It stated “India CPI probably slowed down additional to three.94 per cent in Feb’25 as towards 4.31 per cent in January’25 on account of additional easing in vegetable costs, particularly OPT (onion, potato & tomato)”.

Meals inflation, a significant element of retail inflation, is estimated to have fallen additional to 4.66 per cent in February 2025, marking a major decline. That is the primary time since June 2023 that meals inflation has probably dropped under the 5 per cent stage.

The month-on-month (m/m) meals inflation remained in unfavourable territory for the fourth consecutive month, aligning with the winter season when vegetable costs usually decline.

The impression of this downward development is clear within the greens CPI, which fell sharply from 11.35 per cent in January 2025 to three.89 per cent in February 2025. On-the-ground (OTG) costs of greens and pulses continued to ease through the month, contributing to the general decline in meals inflation.

The report highlighted that sturdy kharif manufacturing and seasonal winter corrections in vegetable costs have performed an important function in reducing meals inflation.

Nevertheless, costs of edible oils and sugar noticed an upward development throughout the identical interval.

Alternatively, core CPI, which excludes meals and gas, inched as much as 3.87 per cent in February 2025 from 3.66 per cent in January 2025, primarily resulting from a rally in gold costs. In the meantime, gas CPI remained in a deflationary zone, serving to to offset a number of the inflationary pressures in different classes.

The most recent estimates point out that India’s inflation trajectory is on a downward development, bringing aid to shoppers and policymakers. Nevertheless, fluctuations in world commodity costs and home meals provide dynamics will proceed to affect future inflation tendencies.