Inflation dips for 7th month to 3.2%, lowest since July'19

India's benchmark inflation measure fell for the seventh consecutive month in April to reach 3.16%, the lowest since July 2019, brightening the prospects of another rate cut in the June meeting of RBI's Monetary Policy Committee (MPC), a move that could generate potential tailwinds for economic growth.

- Roshan Kishore

The Consumer Price Index (CPI) rose at 3.16% in April 2025 compared to 3.34% in March according to data released by the National Statistical Office (NSO) on Tuesday. The ongoing moderation in inflation is the result of a sharp fall in food inflation, especially vegetables. The food component of CPI, according to the NSO press release has fallen every month to reach 1.8% in April from a value of 10.9% in October 2024, bringing the headline inflation number from 6.21% to 3.16% during this period. To be sure, the momentum of the fall seems to have moderated in the past couple of months. The April inflation print of 3.16% is in line with the projection by a Bloomberg poll of economists.

Vegetables continue to be the driving force behind falling food inflation with an annual contraction of 11% in April. Pulses and Spices also saw a fall in prices in April in year-on-year terms. Edible oil and fruits categories, on the other hand, saw a double-digit inflation.