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Food Inflation in India Falls to 3.75% in February

14 March 20251 min read
ECONOMYFood Inflation inIndia Falls to 3.75%in February14 March 2025safalsetu.com

Why in the news

Inflation cooled in February on the back of bigger harvests, easing pressure on household budgets and monetary policy.

Key facts

  • CPI inflation 3.61%, lowest since July last year.
  • Food inflation 3.75%, after a peak of 10.87%; it averaged 8.4% in 2024.
  • RBI forecast: 4.2% in FY26 versus 4.8% in FY25.
Farm indicatorChange
Kharif foodgrains+7.9%
Rabi production+6%
Oilseeds+21% kharif, +2% rabi
Horticulture362.09 million tonnes (+2.07%)
Agri and allied growth4.6% in FY25 vs 2.7% in FY24

Concerns and way forward

  • Climate extremes, farm-to-consumer price gaps, poor storage and rural infrastructure.
  • Invest in supply chains, market access, storage and connectivity.

Exam angle

  • Index: CPI; February food inflation 3.75%.

Test yourself

1. What was India's food inflation in February, the lowest since May 2023?

Food inflation dropped to 3.75%; overall CPI inflation was 3.61%.

2. What retail inflation does RBI project for FY26, according to the notes on food inflation?

RBI projects 4.2% in FY26, down from 4.8% in FY25.

3. By what percentage did kharif foodgrain production rise, helping cool food prices?

Kharif foodgrain output rose 7.9%; rabi rose 6%.

This topic is part of Daily Current Affairs 14 March 2025 (15 topics).

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