India’s Consumer Price Index (CPI)-based inflation fell to 3.34% in March 2025, the lowest in nearly six years. The drop was mainly driven by a sharp fall in food prices, especially meat, eggs, and vegetables. This development follows easing wholesale prices and a recent repo rate cut by the Reserve Bank of India.

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• CPI inflation in March 2025 fell to 3.34%, lowest since August 2019
• February 2025 inflation was 3.61%; March 2024 was 4.38%
• Drop mainly due to sharp fall in food inflation, now at 2.69%
• Meat, eggs, vegetables saw biggest decline in price pressure
• Wholesale inflation also fell to 2.05%, a 6-month low
• Reserve Bank recently cut repo rate by 25 basis points due to easing inflation
• Further 50 bps monetary easing expected in coming 3 policy reviews
• June 2025 rate cut likely if inflation stays below 4%
• Monsoon forecast above normal, but timing crucial for agri prices
• CPI for FY26 projected at 4%; risks seen as balanced