August MPC: RBI cuts FY26 inflation forecast to 3.1% on easing food prices, favourable monsoon; growth outlook steady at 6.5%, CRR cut to begin in September
The finance ministry's June 2025 review says inflation could fall below the RBI's 3.7% target, providing scope for further easing, though credit growth remains weak
Vegetable and pulses prices see steepest fall in years; WPI turns negative too
June 2025 CPI: Inflation for the month remained below the RBI's medium-term target of 4%, continuing a downward trend driven by base effects and softening food and fuel prices
Since the February 2025 MPC, the RBI has started to support growth by cutting policy rate
Retail inflation for farm and rural workers eased to 2.84 per cent and 2.97 per cent in May from 3.48 per cent and 3.53 per cent, respectively, in April this year, according to data released by the Labour Ministry on Friday. According to the data, the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 2 points and 1 point in May 2025 to stand at 1305 and 1319 points, respectively. The CPI-AL and CPI-RL were 1307 points and 1320 points in April 2025. "The year-on-year inflation rates based on CPI-AL and CPI-RL for May 2025 were recorded at 2.84 per cent and 2.97 per cent, respectively, compared to 7.00 per cent and 7.02 per cent in May 2024. The corresponding figures for April 2025 stood at 3.48 per cent for CPI-AL and 3.53 per cent for CPI-RL," said the labour ministry.
Retail inflation in rural areas in May stood at 2.59 per cent, while that in urban areas stood at 3.07 per cent
Cereal prices rose by 4.77% in May 2025, a slight moderation from April's 5.35% rise. Prices of pulses dropped 8.22%, following a 5.23% decline in April
Retail inflation for farm as well as rural workers eased marginally to 3.48 per cent and 3.53 per cent, respectively, in April this year compared to the pace of price hikes for the two categories at 3.73 per cent and 3.86 per cent recorded in March. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) increased by 1 point each in April 2025 to stand at 1307 and 1320 points, respectively, a labour ministry statement said. The CPI-AL and CPI-RL were 1306 points and 1319 points, respectively, in March. "The year-on-year inflation rates based on CPI-AL and CPI-RL for April 2025 were recorded at 3.48 per cent and 3.53 per cent, respectively, compared to 7.03 per cent and 6.96 per cent in April 2024. The corresponding figures for March 2025 stood at 3.73 per cent for CPI-AL and 3.86 per cent for CPI-RL," it stated.
Sharp drop in prices of vegetables and pulses cools food inflation to 42-month low
CPI-based inflation has now stayed below the Reserve Bank of India's medium-term target of 4% for the third consecutive month
In March, retail inflation stood at 3.34 per cent- the lowest since August 2019
Retail inflation for farm workers eased to 3.73 per cent in March 2025, as compared to 4.05 per cent in February this year, as per latest data released on Wednesday. For rural workers retail inflation eased to 3.86 per cent in March 2025, as against 4.10 per cent in February this year, according to official data. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) decreased by 3 points and 2 points, for the month of March 2025, falling to 1,306 and 1,319 points, respectively, a labour ministry statement said. The CPI-AL and CPI-RL were at 1,309 points and 1,321 points respectively in February 2025. "The year-on-year inflation rates based on CPI-AL and CPI-RL for March 2025 were recorded at 3.73 per cent and 3.86 per cent, respectively, compared to 7.15 per cent and 7.08 per cent in March 2024. The corresponding figures for February 2025 stood at 4.05 per cent for CPI-AL and 4.10 per cent for CPI-RL," it stated.
It said that this trajectory underscored the country's resilience and commitment to ensuring price stability without compromising on development goals
March food inflation fell to 2.69% in March from 3.75% in February -- the lowest level since November 2021
The retail price deflation in LPG (excl conveyance) was as high as over 24 per cent for each of the first five months of 2024-25
Inflation outlook for India improves on sharp decline in food prices and record wheat and pulse production
The RBI will announce the review of the policy meeting on April 9
Swiss investment bank UBS believes an accommodative monetary policy could help India sustain growth amid rising global uncertainties and trade disputes
Industrial output picks up at 5 per cent in January 2025 from 3.2 per cent in December