India’s retail inflation, measured by the Consumer Price Index (CPI), eased to 3.34% in March 2025, marking the lowest year-on-year inflation since August 2019, as per data released by the National Statistics Office (NSO) on April 15.

This drop represents a 27 basis point decline from February’s CPI of 3.61%, bringing much-needed relief to policymakers and consumers alike.

📊 Key Highlights from the CPI Report

• Food Inflation:
  Food price inflation (CFPI) dropped sharply to 2.69%, down from 3.75% in February. This is the lowest food inflation rate seen since November 2021.
• Rural vs Urban:
  • Rural CPI eased to 3.25% (from 3.79%)
  • Urban CPI slightly rose to 3.43% (from 3.32%)
    However, urban food inflation dropped significantly to 2.48% from 3.15%
• Core Contributors to the Fall:
  Declines were led by a drop in prices of vegetables, eggs, pulses, meat & fish, cereals, and dairy. Notably, the vegetables index saw a 7%+ drop YoY.
• Fuel & Light Inflation:
  Rebounded to 1.48% YoY in March, from negative territory in February (-1.33%).
• Other Sectors:
  • Housing Inflation: 3.03%
  • Health: 4.26%
  • Education: 3.98%
  • Transport & Communication: 3.30%

🥇 What Got Costlier (Highest YoY Inflation):

1. Coconut oil – 56.81%
2. Coconut – 42.05%
3. Gold – 34.09%
4. Silver – 31.57%
5. Grapes – 25.55%

🧊 What Got Cheaper (Negative Inflation):

1. Ginger – (-38.11%)
2. Tomato – (-34.96%)
3. Cauliflower – (-25.99%)
4. Jeera (cumin) – (-25.86%)
5. Garlic – (-25.22%)

🗺️ State-wise Snapshot:

States with highest combined inflation rates in March 2025:

• Kerala – 6.59%
• Karnataka – 4.44%
• Chhattisgarh – 4.25%
• Jammu & Kashmir – 4.00%
• Maharashtra – 3.86%

🧾 Conclusion

With headline inflation at a multi-year low and food inflation easing notably, this CPI print could support more accommodative monetary policy moves in the coming months. However, sectoral volatility—especially in essentials like vegetables and pulses—still needs close monitoring.

Credit: Based on data from the CPI Press Release (March 2025) published by the National Statistics Office, Government of India.