India’s year-on-year inflation rate based on the All India Consumer Price Index (CPI) eased to 3.61 per cent in February 2025, marking a 65-basis-point decline from January and reaching its lowest level since July 2024.
A sharper drop was recorded in food inflation, which fell to 3.75 per cent in February from 5.97 per cent in January, marking a 222-basis-point decline, the lowest since May 2023. The fall was driven by lower prices of vegetables, eggs, meat and fish, pulses, and dairy products.
Urban and Rural Inflation Trends
- Rural Inflation: Headline inflation in rural areas stood at 3.79 per cent in February, down from 4.59 per cent in January. Food inflation in rural areas also declined sharply from 6.31 per cent in January to 4.06 per cent in February.
- Urban Inflation: Inflation in urban areas also saw a notable decline, dropping from 3.87 per cent in January to 3.32 per cent in February. Similarly, urban food inflation fell from 5.53 per cent in January to 3.20 per cent in February.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser