In February, retail inflation fell below 4 percent to 3.61 percent. Which was 4.26 percent in January. There has been great news about India’s retail inflation. During the month of February, the retail inflation rate reached the lowest level of 7 months. This is much less than the scope of RBI. In February 2025, the retail inflation rate was 3.61%, which is a major decline. While the retail inflation rate during January was 4.26%. Retail inflation declined to 3.61% in February, lower than an estimate of 3.98% of economists.
Reduction in retail inflation rate
The data shared by the government is better than the data provided by economists. Economists had made high estimates, while government figures showed that retail inflation was low. According to government data, retail inflation declined by 65 basis points in February 2025 as compared to January 2025. This is the lowest annual inflation since July 2024. This means that the inflation rate has reached a 7 -month low.
What is the reason?
The prices of tomatoes, onions, potatoes and green vegetables have come down, which has reduced inflation. Apart from this, consumer products and food items have also declined. The CSO stated that significant decline in inflation and food inflation during February was mainly due to inflation in vegetables, eggs, meat and fish, pulses and yield; And the reason for this is the decline in the prices of milk and products made from it. The main reason for this is the fall in prices of vegetables and protein -rich items.
RBI may reduce the repo rate!
The Reserve Bank of India had cut the repo rate in the previous monetary policy, which brought great relief to the borrowers. Now, with a huge decline in inflation, it can be assumed that the Reserve Bank of India may once again cut interest rates in its next monetary policy.
Another news of relief
Meanwhile, the country’s industrial production (IIP) increased by 5 percent in January this year due to good performance of manufacturing sectors. Industrial production measured in terms of industrial production index increased 4.2 percent in January 2024. According to the official data released on Wednesday, the government has revised its provisional estimate of 3.2 percent increase in December 2024 to 3.5 percent.
