India's Inflation Hits Record Low Since 2019

Retail inflation in India dropped to 3.16% in April from 3.34% in March, the lowest since July 2019. Significant factors include decreased inflation in food items. The Reserve Bank of India maintains a manageable 2-6% range, holding the repo rate steady at 6.5%, thus anticipating controlled inflation in FY 2025-26.

In a significant economic development, India's retail inflation fell to a four-year low of 3.16% in April from 3.34% in March, according to the Ministry of Statistics and Programme Implementation. This marks the lowest inflation rate since July 2019.

The decline in headline and food inflation during April 2025 is primarily driven by reductions in the prices of vegetables, pulses, fruits, meat and fish, and cereals. The Reserve Bank of India's inflation management strategy appears effective as inflation remains within the 2-6% range, having last surpassed 6% in October 2024.

Policymakers previously expressed concerns over food prices, aiming to sustain retail inflation at around 4%. Despite global inflationary pressures, India's inflation trajectory remains stable. The RBI's decision to maintain the repo rate at 6.5% for eleven sessions mirrors this stability. Looking ahead, the annual CPI inflation for 2025-26 is projected at a stable 4.0%.

(With inputs from agencies.)