India retail inflation rate: Did you find vegetables and some food and drink a little cheap last month? If yes, then your understanding is perfect, the latest government figures show that India’s retail inflation (CPI) was the lowest 3.16 percent in the last 6 years in April.

Prices of food items stopped

In April 2025, food inflation fell to 1.78 percent. It was 2.69 percent in March and 3.75 percent in February. That is, the plate has become somewhat cheaper. But not everything, things like oil, fruits and milk still remain expensive.

Some things also became expensive

Talking about the month of month, the prices of vegetables, eggs, pulses and meat and fish increased at a slow speed, but the prices of fruits, oil and milk continued. Overall, Food and Beverages increased by 2.14 per cent annually, compared to 2.88 per cent in March.

Inflation below 4 percent

Inflation has been below 4 percent continuously for 3 months. This has happened for the first time in the last 5 years. In a poll in MINT, 21 economists estimated that inflation could be 3.2 percent in April. While the real figure remained slightly below that.

Now RBI is eyeing

After this relief in April, everyone is now eyeing the Reserve Bank of India (RBI). Last month, the RBI Monetary Policy Committee had reduced the repo rate to 6 percent, and is now expected that there may be another cut in June.

GDP falls slightly

Recently, RBI has reduced its 2025-26 GDP growth estimate from 6.7 per cent to 6.5 per cent. The reason for this has been stated that uncertainty in global trade and the possibility of US President Donald Trump put a heavy tariff on Asia. According to RBI Governor Sanjay Malhotra, now the focus can move away from only inflation control and can go towards credit growth and economic support.

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Retail inflation: There is a relief news for the Indian general public. Retail inflation in the country has come down to just 3.34 percent in March 2025 and this figure is the lowest since September 2019. According to the data released by the government on Tuesday, this decline has come mainly due to softness in the prices of food items.

In February too, the inflation rate was 3.61 percent and now it has seen further decline. This decline has come at a time when there is uncertainty in the global markets, yet the atmosphere of relief is visible in the Indian market.

Positive signal for economy

The special thing is that these figures are not only in the range of 2-6 percent of the Reserve Bank of India (RBI), but also below 4 percent, which is a positive signal for the economy. Now if we talk about food and drink, then food inflation has come to 2.69 percent in March, which was 3.75 percent in February. Inflation of vegetables declined a major decline, where there was a decline of -1.07 per cent in February, it fell to -7.04 per cent in March.

Common man got relief

Grain inflation was 5.93 percent while the prices of pulses declined by 2.73 percent. This is a huge relief for those whose budget rests on lentils and vegetables. Inflation of fuel and electricity has also come down to 1.48 percent, while both rural and urban areas have decreased inflation. Rural inflation has come down from 3.79 per cent to 3.25 per cent from February and urban inflation has also come to 2.48 per cent.

What will happen next?

RBI Governor Sanjay Malhotra recently said that the trend of fall in inflation will continue and there may be further relief in FY26 (FY 2025-26). He said that if the prices of food items continue to stability, the pressure of spending on homes will be reduced. However, RBI also said that global uncertainty, such as tariffs increased by the US, are still a big threat. For example, US President Donald Trump imposed 26 per cent import duty on several countries including India, although except China, the rest of the countries have also been given 90 days relief.

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