The common people in the country have got some relief on the retail inflation front. The fresh retail -based inflation released by the government has come down to 3.61 percent below 4 percent in February. The main reason for the decrease in retail inflation in February is the rate of increase in prices of vegetables and protein -rich goods. This has made a scope for the Reserve Bank of India to cut the interest rate for a second time next month. This decline in February is only the third time in the current financial year when the rate of inflation has come below 4 percent. Inflation figures were below the average of the MC Poll of economists, with inflation estimated at 3.8 percent. According to the data, for the first time after September 2024, food inflation also fell below 6 percent.
How was the trend in food inflation
According to the news, the consumer price index -based retail inflation was 4.26 percent in January and 5.09 percent in February 2024. The data released by the National Statistics Office (NSO) suggests that the year-on-year inflation rate for February 2025 was 3. 75 percent. Food inflation has seen a rapid decline of 222 basis points in February 2025, compared to January 2025.
According to the latest NSO data, food inflation in February 2025 is the lowest since May 2023. The NSO stated that significant decline in headline inflation and food inflation during February mainly vegetables, eggs, meat and fish, pulses and products; And is due to a decline in inflation of milk and products.
Rate may be cut on 9 April
The Reserve Bank of India (RBI), which has been entrusted with the responsibility of maintaining retail inflation at 4 percent (+/- 2 percent), has cut 25 basis points in the short-term lending rate (repo) last month to reduce concerns on the inflation front. The central bank is scheduled to declare the next set of bilateral monetary policy on 9 April.
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