India’s CPI Inflation Falls To Seven-Month Low At 3.61 Per Cent In February, Raising Hopes For RBI Rate Cut In April

India’s Consumer Price Index (CPI) inflation fell to a seven-month low of 3.61 per cent in February 2025, surpassing expectations and creating room for a potential second consecutive interest rate cut by the Reserve Bank of India (RBI) next month, reported The Hindu.

The decline was driven primarily by a drop in food inflation, particularly in vegetables and protein-rich items.

Consumer Food Price Inflation (CFPI) saw a sharp decline, falling to 3.75 per cent in February from 5.97 per cent in January, marking a 222-basis point drop in just one month.

The National Statistical Office (NSO) attributed this fall to lower inflation in key food categories, including vegetables, egg, meat, fish, pulses, and dairy products. 

"The food inflation in February 2025 is the lowest after May 2023," it said" the NSO stated, underlining the significant relief in food prices.

With inflation now well within the RBI’s target range of 4 per cent (+/- 2 per cent), the central bank had already reduced the repo rate by 25 basis points last month. 

Given the continued easing of inflation, analysts anticipate another rate cut in the upcoming bi-monthly monetary policy review on 9 April.