Retail Inflation Falls to 6-Year Low Due to Govt Efforts, Says Finance Ministry

Retail inflation in India has fallen to a six-year low of 4.6% in FY25, reflecting the government's sustained efforts to control price rises while maintaining robust economic growth, the Finance Ministry said in a statement on Friday.

Describing the drop as a significant economic milestone, the ministry said the easing inflationary trend has helped reduce cost-of-living pressures and fostered a more stable environment for long-term development.

“With inflation now at its lowest since 2018–19, India has not only reinforced macroeconomic stability but also created an enabling environment for sustainable growth,” the statement said.

The decline was largely driven by a fall in food prices and a favourable base effect. In March 2025, Consumer Price Index (CPI)-based retail inflation eased to 3.34%, while food inflation — measured by the Consumer Food Price Index (CFPI) — dropped to 2.69%, its lowest level since November 2021.

Key food categories including vegetables, eggs, pulses, meat and fish, cereals, and milk products witnessed a sharp moderation in prices, contributing to the overall decline.

The Finance Ministry credited the fall in inflation to the Reserve Bank of India’s calibrated monetary policies and the central government's targeted efforts to address supply-side challenges and stabilise prices of essential goods.

“This milestone highlights the effectiveness of the Reserve Bank of India’s pro-growth monetary policy, which has successfully balanced economic expansion with price stability,” the ministry noted.