Retail inflation has dropped to 4.6 per cent in the fiscal year 2024-25, which is the lowest in six years since 2018. The Ministry of Finance, in a statement, said that as measured by the Consumer Price Index (CPI), the year-on-year inflation rate for March 2025 dropped to 3.34 per cent.
This marked a decline of 27 basis points from February 2025, making it the lowest monthly inflation rate since August 2019. The Ministry said that these figures demonstrate a sustained effort to curb price rises while fostering economic growth. It added that this milestone highlights the effectiveness of the Reserve Bank’s pro-growth monetary policy, which has successfully balanced economic expansion with price stability.
The Ministry added that the government’s strategic interventions have been pivotal in achieving this outcome. Key measures include bolstering buffer stocks of essential food items and releasing them periodically in open markets, alongside subsidised retail sales of staples like rice, wheat flour, pulses, and onions.
The Consumer Price Index (CPI) is one of the most important economic indicators used to measure changes in the general level of retail prices over time. It reflects how much households need to spend on a fixed basket of goods and services they typically consume, such as food, clothing, housing, and fuel.