Retail inflation in India eases to lowest since July 2019

New Delhi:  India’s retail inflation, based on the Consumer Price Index (CPI), in April 2025 fell to 3.16 per cent. This is  the lowest since July 2019.

The fall in April 2025 inflation comes amid a sharp decline in food inflation during the month. There is decline of 18 basis points in headline inflation of April, 2025 in comparison to March, 2025. It is the lowest year-on-year inflation after July, 2019.

Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of April, 2025 over April, 2024 is 1.78% (Provisional). A sharp decline of 91 basis point is observed in food inflation in April, 2025 in comparison to March, 2025. The food inflation in April, 2025 is the lowest after October, 2021. Corresponding inflation rate for rural and urban are 1.85% and 1.64%, respectively.

India’s CPI inflation eased to a six-year low of 3.16% in April 2025, driven by falling prices of vegetables, pulses, and cereals, with food inflation at its lowest since October 2021.

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In April 2025, rural headline inflation fell to 2.92% from 3.25% in March, and food inflation dropped to 1.85% from 2.82%. Urban headline inflation decreased slightly to 3.36% from 3.43%, with a notable reduction in food inflation to 1.64% from 2.48%.

Housing inflation for April was 3.00%, down from 3.03% in March. Education inflation rose to 4.13% from 3.98%, covering both rural and urban sectors. Health inflation remained almost steady at 4.25% compared to 4.26% in March, for both sectors. Transport and communication inflation increased to 3.73% from 3.36%, while fuel and light inflation jumped to 2.92% from 1.42%, both reflecting combined rates for rural and urban areas.

Kerala experienced the highest inflation for April month to 5.94%, followed by Karnataka (4.26%) and Jammu and Kashmir (4.25%).

Wholesale Price Index (WPI) is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index (CPI) is a price index that calculates price changes of goods and services that a consumer has to pay in the retail market. The monetary police of Reserve Bank of India are made after reviewing the CPI.