Quote on CPI from Mr. Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
Below the Quote on CPI from Mr. Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
“India's retail inflation, as measured by the Consumer Price Index (CPI), eased significantly to 3.34% in March 2025, marking the lowest annual inflation rate since August 2019. The decline from 3.61% in February reflects a sharp softening in food prices, with the Consumer Food Price Index (CFPI) falling to 2.69%, a 106 basis point drop over the previous month. This moderation was primarily driven by a decline in the prices of vegetables, pulses, eggs, cereals, and dairy products. Rural inflation saw a notable deceleration to 3.25%, while urban inflation remained relatively stable at 3.43%, albeit with a sharp fall in urban food inflation to 2.48%. Sector-wise, inflation in housing, education, and health registered mild increases, while fuel and light inflation turned positive at 1.48% after months of contraction. The moderation in both headline and core inflation strengthens the case for a potential policy rate cut by the Reserve Bank of India in the coming days. With inflation now well within the central bank’s 4% target and core price pressures subdued, the current data underscores a favorable macroeconomic environment for monetary easing - provided food inflation remains contained and global risks stay muted”.
Above views are of the author and not of the website kindly read disclaimer
