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Retail inflation eases to seven-month low of 3.61% in February
Mar-12-2025

India's retail inflation, as measured by the Consumer Price Index (CPI), eased to seven-month low of 3.61 per cent in the month of February, as food inflation eased further. Inflation for January was revised to 4.26 per cent from 4.31 per cent estimated earlier. The country’s retail inflation had stood at 5.09 per cent in February 2024. The previous low was recorded in July 2024, when the retail inflation had stood at 3.60 per cent. This also marks the first time in six months that retail inflation fell below the Reserve Bank of India’s (RBI) medium-term target. The government has tasked the RBI to ensure that retail inflation remains at 4%, with a margin of 2% on either side. The CPI data is mainly factored in by the RBI while making its bi-monthly monetary policy. Besides, the Food inflation or the All India Consumer Food Price Index (CFPI) in February 2025 stood at 3.75 per cent, compared with 5.97 per cent in January 2025.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in February 2025 stood at 3.79 per cent over 4.59 per cent in January 2025. The Urban CPI (General) stood at 3.32 per cent in February as against 3.87 per cent in January. The index value for Rural, Urban and Combined CPI (General) stood at 194.5, 190.1 and 192.5 respectively, in February 2025. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of February, 2025, NSO collected prices from 100 per cent villages and 98.6 per cent urban markets while the market-wise prices reported therein were 89.8 per cent for rural and 92.6 per cent for urban.

Besides, Food and beverage inflation eased to 3.84 per cent in February from 5.68 per cent in January. This was led by vegetable prices further cooling to (-) 1.07 per cent compared to 11.35 per cent in the prior month. Inflation for meat and fish was 2.11 per cent compared to a rise of 5.25 per cent in the previous month. Inflation in eggs came down to (-) 3.01 per cent from 1.27 per cent in the last month. The inflation rate for milk and milk products was 2.68 per cent as compared to 2.85 per cent in the previous month. Inflation in pulses stood at (-) 0.35 per cent after rising by 2.59 per cent last month. Clothing and footwear inflation remained stable at 2.68 per cent from the previous month, while Housing inflation inched up to 2.91 per cent from 2.76 per cent in the prior month. Fuel and light inflation remained in deflationary territory at (-) 1.33 per cent as against (-) 1.38 per cent in the prior month.


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