New Delhi: In April, India’s retail inflation dropped to 3.16 per cent, the lowest it has been in almost six years. This happened mainly because vegetable prices kept falling.
In March, inflation was 3.34 per cent, and many experts had expected it to be around 3.2 per cent in April, but the actual number was slightly lower.
A big reason for this drop was the slow rise in food and drink prices. Food inflation fell to 2.14 per cent in April, down from 2.88 per cent in March. Vegetable prices fell sharply—by almost 11 per cent in April, after falling over 7 per cent in March.
Prices of fruits, pulses, and protein-rich foods like eggs and meat also remained low, helping bring inflation down.
Food inflation in April was just 1.78 per cent, much lower than 8.7 per cent in the same month last year.
This drop is good news for the Reserve Bank of India (RBI), which aims to keep inflation around 4 per cent, with some flexibility (between 2 per cent and 6 per cent).
Since the price situation is improving, the RBI has cut interest rates by 0.5 per cent in two steps.
Looking ahead, the RBI expects inflation for the full year 2025-26 to average 4 per cent, with slightly lower inflation in the first half of the year and a small rise toward the end.
The overall drop in prices was driven by a slowdown in food and beverage inflation, which fell to 2.14 per cent in April from 2.88 per cent in March. The biggest reason was a sharp fall in vegetable prices, which dropped by 10.98 per cent in April, after already falling by 7.04 per cent the previous month.
Key Inflation Metrics (April 2025)
* Cereal prices increased by 5.35 per cent, slightly lower than March’s 5.93 per cent rise.
* Meat and fish prices saw a decline of 0.35 per cent, reversing a 0.32 per cent increase in March.
* Milk and milk products inflation rose to 2.72 per cent, up from 2.56 per cent the previous month.
* Pulses recorded a deeper contraction of 5.23 per cent, compared to a 2.73 per cent drop in March.
* Clothing inflation continued to rise, up by 2.67 per cent in April.
