Retail inflation at 6-year low a result of govt efforts: Finance ministry

The government has demonstrated a sustained effort to curb price rises while fostering economic growth, with retail inflation reaching a six-year low of 4.6 per cent in FY25, the finance ministry said in a press statement. It said that the declining trend in inflation has helped ease cost-of-living pressures and fostered a more stable environment for economic growth.

 

“With inflation now at its lowest since 2018–19, India has not only reinforced macroeconomic stability but also created an enabling environment for sustainable growth,” the finance ministry statement said.

 

It said that this trajectory underscored the country’s resilience and commitment to ensuring price stability without compromising on development goals.

 

Led by a decline in food prices and a high base effect, India’s consumer price index (CPI)-based retail inflation in March eased to 3.34 per cent.

 

The year-on-year food inflation based on the Consumer Food Price Index (CFPI) stood at 2.69 per cent in March 2025, the lowest since November 2021. The overall moderation in food prices was led by a drop in inflation across key categories such as vegetables, eggs, pulses and products, meat and fish, cereals and products, and milk and products.

 

The finance ministry said that this consistent moderation highlights the combined impact of the Reserve Bank of India’s calibrated monetary policy and the Government of India’s focused interventions to ease supply-side constraints and stabilise prices of essential commodities.

 

“This milestone highlights the effectiveness of the Reserve Bank of India’s pro-growth monetary policy, which has successfully balanced economic expansion with price stability,” the finance ministry said.