India's retail inflation eased below 4% in February for the first time in six months as vegetable prices fell, government data released on Wednesday showed. Annual retail inflation in February eased to 3.

India’s Retail Inflation 2025, Retail Inflation outlook for February 2025 news updates: Retail inflation based on Consumer Price Index (CPI) dipped to 3.61 per cent in January, Government data showed on Wednesday.

CPI is now well within RBIs main inflation target of 4%, warranting a possibility of yet another 25 bps rate cut from the central bank in the upcoming April 2025 policy. If that were the case, a repo rate cut would lead to further revision in home loan EMIs and fixed deposit rates by banks.

The CPI inflation print for February falls below the mid-point of the MPC's medium term target range, led by cooling in food inflation

India's retail inflation moderated to a seven-month low in February, led by falling vegetable prices.

The sharp decline in inflation has increased expectations for another rate cut by the RBI on April 9. If this occurs, it will mark the second rate reduction in just two months.

India's retail inflation fell to a seven-month low of 3.61% in February, government data released on Wednesday showed. The figure was much lower than the revised 4.26% recorded in January this year. The decline in inflation can largely be attributed to falling food prices, which make up nearly half of the overall Consumer Price Index (CPI) basket.

India's retail inflation fell below 4% in February for the first time in six months mainly due to a decline in vegetable prices, giving the central bank room to cut rates further in coming meetings.