India's retail inflation drops to 4.6% in FY2024-25; Lowest in six years

India's retail inflation, as measured by the Consumer Price Index (CPI), which reflects the cost of everyday goods and services, fell to a remarkable 4.6% in the fiscal year 2024-25, the lowest since 2018-19. This milestone highlights the effectiveness of the Reserve Bank of Indias pro-growth monetary policy, which has successfully balanced economic expansion with price stability. Notably, the year-on-year inflation rate for March 2025 dropped to 3.34%, a decline of 27 basis points from February 2025, marking the lowest monthly inflation rate since August 2019. These figures demonstrate a sustained effort to curb price rises while fostering economic growth.

 

Retail inflation in India has followed a steady downward path over the past three financial years, falling from 6.7 percent in 202223 to 5.4 percent in 202324, and further to 4.6 percent in 202425. This consistent moderation highlights the combined impact of the Reserve Bank of Indias calibrated monetary policy and the Government of Indias focused interventions to ease supply-side constraints and stabilise prices of essential commodities. The declining trend has helped ease cost-of-living pressures and fostered a more stable environment for economic growth.

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