There has been a lot of good news about India’s retail inflation. During the month of February, the retail inflation rate has reached a low of 7 months. This is much less than the scope of RBI. The retail inflation rate in February 2025 has been 3.61%, which is a major decline. While the retail inflation was 4.26% during January.
The data shared by the government is better than the data given by the Economist. Economist had estimated more, while government figures have less retail inflation. According to government data, there is a decline of 65 basis points in retail inflation of February 2025 compared to January 2025. After July 2024, it is the lowest inflation from year to year. That is, inflation has reached the 7 -month low.
These things were cheap
The price of tomatoes, onions, potatoes and green vegetables has been seen to fall, due to which there has been a cut in inflation. At the same time, there has been a decline in Cazummer Products and food items.
The NSO stated that a significant decline in inflation and food inflation during February mainly vegetables, eggs, meat and fish, pulses and products; And due to a decline in inflation of milk and products. The main reason for this is the increase in prices of vegetables and protein -rich goods.
RBI may cut repo rate
The Reserve Bank of India had cut the repo rate in the previous monetary policy, due to which the loans took great relief. At the same time, there can be a big reduction in inflation that the Reserve Bank of India can once again reduce the interest rate in its next monetary policy.
Another relief news
Meanwhile, the good performance of manufacturing sectors increased by 5 per cent in the country’s industry production (IIP) in January this year. Industrial production measured in terms of industry production index increased by 4.2 percent in January 2024. According to the official data released on Wednesday, the government has revised the temporary estimate of 3.2 percent increase in December 2024, it has now been revised to 3.5 percent.
Why did inflation reduced so much?
One major reason for the decline was the fall in food prices. In February, the Consumer Food Price Index (CFPI) inflation was 3.75%, which is 222 base points from January. This is the lowest food inflation since May 2023.
Statistics showed that inflation in rural areas was more than urban areas. The total inflation rate in rural areas was 3.79% in February, which was 4.59% in January. Food inflation in rural India declined from 6.31% in January to 4.06% in February. Inflation in urban areas declined from 3.87 percent of January to 3.32 percent in February. Whereas food inflation declined from 5.53 percent to 3.20 percent.
Significantly, the housing inflation was 2.91% in February, which was slightly more than 2.82% in January. Fuel and energy inflation was negative at -1.33% compared to -1.49% in January. Inflation in education remained stable at 3.83%, while inflation in health increased from 3.97% to 4.12%. Inflation in transport and communication sectors was 2.87%, which was 2.76% in January.