Retail inflation slows to 3.16% in April, lowest in 69 months

Retail inflation in India cooled for the sixth consecutive month in April 2025, coming in at 3.16%, the lowest it has been in 69 months. The fall in prices has been driven in large part by sharply easing food prices, especially those of vegetables and pulses.

The monthly Consumer Price Index released by the Ministry of Statistics and Programme Implementation stood at 3.34% in March 2025, and had been falling consistently since October 2024, when it had hit a 14-month high of 6.21%. April’s inflation figures are the lowest since July 2019. The data shows that inflation in the food and beverages category slowed for the sixth consecutive month to 2.14%, with vegetable prices contracting 10.98%, pulses contracting 5.23%, and meat and fish prices contracting 0.35% over their levels in April last year.

Vegetable prices have been on a downward trend for a little while now, with April’s data marking the third consecutive month of price contractions.

However, while prices have been cooling, a large part of this contraction has to do with a high base effect, since vegetable inflation was in the 27-30% range in the February-April period last year.

Pulses prices, too, have contracted for the third consecutive month on a high base from last year. Meat prices have contracted for the second-consecutive month.

According to Madan Sabnavis, chief economist of the Bank of Baroda, overall inflation would have come in at a much higher 4.1% if food inflation was excluded from the calculation. The April inflation number might not be enough to push the Reserve Bank of India’s Monetary Policy Committee to cut rates in its next meeting in June, he added.

“It does look like that this number (April inflation) may not trigger a rate cut given that there would be time to evaluate both the monsoon and tariff issues before taking a final call in August,” Mr Sabnavis said. “Inflation would likely be low in May and June too due to the base effect.”

Notably, inflation in the fuel and light category quickened to 2.92% in April 2025, up from 1.48% in March. In clothing and footwear, too, inflation quickened marginally to 2.67% in April, up from 2.62% in March.

Inflation in the housing category came in at 3% in April, marginally lower than 3.03% in March. The pan, tobacco, and intoxicants category saw inflation easing to 2.08% in April, down from 2.48% in March.

The miscellaneous category saw higher-than-average inflation of 5%, with three categories — personal care and effects, health, and education — as the main drivers.