Retail Inflation eases to 7-month-low at 3.61 in February, ET BFSI
By Siddhi NawarIndia’s Client Value Index (CPI)-based inflation for February 2025 stood at 3.61%, marking the bottom year-on-year inflation charge since July 2024. This represents a major 65 foundation factors (bps) decline from January’s 4.31%.
India’s Retail Inflation within the month of January stood at 4.31%, the bottom since August 2024, and marking a 91 foundation level decline from December’s 5.22%. The drop in costs was led by a sharp decline in meals costs, marking a steep fall from the previous months, moderating costs for the patron financial system.
A notable drop in each headline and meals inflation was noticed within the rural sector throughout February. The All India Client Meals Value Index (CFPI) additionally noticed a pointy decline, standing at 3.75%, which is 222 bps decrease than January 2025. This marks the bottom meals inflation stage since Might 2023.
City vs. Rural Inflation Traits
City inflation additionally noticed a gentle decline, dropping from 3.87% in January to three.32% in February 2025. Equally, city meals inflation fell from 5.53% in January to three.20% in February 2025.Nevertheless, housing inflation within the city sector rose barely, growing from 2.82% in January to 2.91% in February.
A pointy decline was noticed in headline and meals inflation in rural sector in February 2025.
Amongst commodities, coconut oil recorded the best inflation at 54.48%, adopted by coconut at 41.61%, gold at 35.56%, silver at 30.89%, and onion at 30.42%. However, some objects skilled vital value drops, with ginger seeing the steepest decline at -35.81%, adopted by jeera (cumin) at -28.77%, tomato at -28.51%, cauliflower at -21.19%, and garlic at -20.32%.
Prime States with Highest Inflation Charges
Regardless of the nationwide decline, some states skilled higher-than-average inflation charges. Kerala recorded the best inflation at 7.31%, adopted by Chhattisgarh at 4.89%, Karnataka at 4.49%, Bihar at 4.47%, and Jammu & Kashmir at 4.28%. These figures characterize the states with a inhabitants exceeding 50 lakh as per Census 2011.Right here is the motion of India’s Client Value Index in FY25, to this point:
