India’s Retail Inflation Falls to 3.61% in February 2025
Why in the news
Softer food prices pulled retail inflation under the RBI target.
Key facts
- CPI inflation: 3.61% in February 2025 against 4.31% in January.
- Food inflation slid from 6% to 3.75%.
- IIP rose 5% in January; manufacturing grew 5.5%.
Rural versus urban
| Area | Earlier | Now |
|---|---|---|
| Rural | 4.59% | 3.79% |
| Urban | 3.87% | 3.32% |
Concerns
- Edible oil prices up 16.36% and fruits up 14.82%, partly due to currency depreciation.
Policy outlook
- With inflation under target, expectations of a repo rate cut at the April 7 MPC meeting strengthened.
Exam angle
- RBI medium-term inflation target: 4%.
- Edible oil and fruits showed the sharpest price rises.