India's Retail Inflation Drops to 7-Month Low of 3.61% in February

Lower food prices drive inflation below the Reserve Bank of India's 4% target, raising expectations for further rate cuts.

India's retail inflation fell to 3.61% in February 2025, down from 4.26% in January, marking the lowest level since July 2024.
Food inflation dropped sharply, with vegetable prices declining by 1.07% year-on-year after an 11.35% increase in January, and pulses also seeing price contractions.
Core inflation rose to 4%, driven by higher gold costs, while other segments saw little change in contribution to the index.
Economists expect the Reserve Bank of India to cut the repo rate by 25 basis points in April, following a February rate cut, as inflation remains below the central bank's target of 4%.
Regional inflation disparities persist, with Kerala recording the highest rate at 7.31% and Telangana the lowest at 1.31%.