India’s retail inflation drops to 7 month low in Feb 2025

India’s retail inflation eased to a seven-month low of 3.61 percent in February from 4.31 percent in January, as the rate of increase in food prices slowed to 3.75 percent as compared to 6.02 percent in the previous month. According to data released by the Ministry of Statistics and Programme Implementation, inflation in rural areas stood at 3.79 percent compared to 3.32 percent in urban regions.

Vegetable inflation showed a sharp drop to minus 1.07 percent from 11.35 percent, while pulses inflation also turned negative at minus 0.35 percent compare to 2.59 percent in



January. Fuel and light inflation remained in deflationary territory at minus 1.33 percent against minus 1.38 percent in the prior month. 

Housing inflation for the Urban Sector went up marginally from 2.82 in January to 2.91 in February. India’s retail inflation in February remained under the central bank’s target. The Reserve Bank of India (RBI) aims to keep inflation within a range of 2 to 6 percent, with a medium-term target of 4 percent. The RBI has forecast inflation at 4.2 percent for the fiscal year 2025-26.