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Retail inflation in India in April fell to 3.16 per cent from 3.34 per cent in March, showed official data released by the Ministry of Statistics and Programme Implementation on Tuesday.
Effectively, headline inflation declined 18 basis points in April 2025 compared to March 2025. According to the government, it is the lowest year-on-year inflation since July 2019. The year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for April 2025 over April 2024 is 1.78 per cent (Provisional). The significant decline in headline inflation and food inflation during the month of April, 2025 is mainly attributed to decline in inflation in vegetables, pulses and products, fruits, meat and fish, personal care and effects and cereals and products. Retail inflation last breached the Reserve Bank of India's 6 per cent upper tolerance level in October 2024. Since then, it has been in the 2-6 per cent range, which the RBI considers manageable. Food prices were a concern for Indian policymakers, who wished to sustain retail inflation around 4 per cent. Inflation has been a concern for many countries, including advanced economies, but India has largely managed to steer its inflation trajectory well. The RBI held its benchmark repo rate steady at 6.5 per cent for the eleventh consecutive time, before cutting it first time in about five years in February 2025. After the RBI's April monetary policy review meeting, the central bank said that inflation is expected to remain under control in the financial year 2025-26. The RBI Governor, Sanjay Malhotra, projected the annual Consumer Price Index (CPI) inflation at 4.0 per cent, assuming a normal monsoon. The CPI inflation is expected to be 3.6 per cent in the first quarter, 3.9 per cent in the second quarter, 3.8 per cent in the third quarter, and 4.4 per cent in the fourth quarter, with risks evenly balanced. (ANI)
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