The CPI inflation print for February falls below the mid-point of the MPC's medium term target range, led by cooling in food inflation

CPI is now well within RBIs main inflation target of 4%, warranting a possibility of yet another 25 bps rate cut from the central bank in the upcoming April 2025 policy. If that were the case, a repo rate cut would lead to further revision in home loan EMIs and fixed deposit rates by banks.

India’s Retail Inflation 2025, Retail Inflation outlook for February 2025 news updates: Retail inflation based on Consumer Price Index (CPI) dipped to 3.61 per cent in January, Government data showed on Wednesday.

India's retail inflation fell below 4% in February for the first time in six months mainly due to a decline in vegetable prices, giving the central bank room to cut rates further in coming meetings.

India's retail inflation moderated to a seven-month low in February, led by falling vegetable prices.

This marks the first time in six months that it fell below the Reserve Bank of India's medium-term target of 4 per cent

India’s retail inflation, measured by the Consumer Price Index (CPI), fell to a seven-month low of 3.61 per cent in February 2025, down from 4.31 per cent in January, as vegetable prices declined, according to government data released on Wednesday.

The numbers released by the Statistics Ministry showed that retail inflation fell by 65 basis points in February as compared to January.

India's retail inflation eased below four per cent to hit a seven month low in February 2025, for the first time in six months driven by a sharp fall in vegetable prices, government data released on Wednesday showed.