Consumer price inflation slips to lowest in more than five years

Official data showed today that the year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of March, 2025 over March, 2024 is 3.34% (Provisional). There is a sharp decline of 27 basis points in headline inflation of March, 2025 in comparison to February, 2025. It is the lowest year-on-year inflation after August, 2019. However, core inflation remains elevated above 4%. Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of March, 2025 over March, 2024 is 2.69% (Provisional). Corresponding inflation rate for rural and urban are 2.82% and 2.48%, respectively.

A sharp decline of 106 basis point is observed in food inflation in March, 2025 in comparison to February, 2025. The food inflation in March, 2025 is the lowest after November, 2021. The significant decline in headline inflation and food inflation during the month of March, 2025 is mainly attributed to decline in inflation of Vegetables, Eggs, Pulses & products, Meat & fish, Cereals & Products and Milk & products.

For Rural Inflation, a sharp decline in headline and food inflation in rural sector was observed in March, 2025. The headline inflation is 3.25% (provisional) in March, 2025 while the same was 3.79% in February, 2025. The CFPI based food inflation in rural sector is observed as 2.82% in March, 2025 in comparison to 4.06% in February, 2025. For Urban Inflation, there was a marginal increase from 3.32% in February, 2025 to 3.43% (Provisional) in March, 2025 is observed in headline inflation of urban sector. However, significant decline is observed in food inflation from 3.15% in February, 2025 to 2.48% in March, 2025.

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