India’s Inflation Eases in April 2025 Amid Declining Food Prices

In a positive economic development, India’s headline inflation for April 2025 has cooled significantly, reaching 3.16% — the lowest since July 2019. This easing of inflation is driven largely by a sharp decline in food prices, especially vegetables, pulses, and fruits. The Consumer Price Index (CPI) and Consumer Food Price Index (CFPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI) offers encouraging signs for consumers and policymakers alike.

Why in News?

The Consumer Price Index (CPI) and Consumer Food Price Index (CFPI) data for April 2025, released on May 13, 2025, shows a marked decrease in inflation rates across rural, urban, and combined segments. The year-on-year CPI inflation stood at 3.16%, and food inflation plummeted to 1.78% — the lowest since October 2021 — signaling a crucial improvement in India’s price stability.

Key Highlights

Headline Inflation (CPI)

• April 2025: 3.16% (provisional)
• March 2025: 3.34%
• Lowest YoY inflation since July 2019

Food Inflation (CFPI)

• April 2025: 1.78%
• March 2025: 2.69%
• Lowest food inflation since October 2021
• Urban CFPI: 1.64% | Rural CFPI: 1.85%

Rural Inflation

• CPI: 2.92% (April) vs. 3.25% (March)
• CFPI: 1.85% (April) vs. 2.82% (March)

Urban Inflation

• CPI: 3.36% (April) vs. 3.43% (March)
• CFPI: 1.64% (April) vs. 2.48% (March)

Other Sectoral Inflation Trends (YoY – April 2025)

• Housing (Urban only): 3.00%
• Education: 4.13% (↑ from 3.98%)
• Health: 4.25% (↓ from 4.26%)
• Transport & Communication: 3.73% (↑ from 3.36%)
• Fuel & Light: 2.92% (↑ from 1.42%)

Significance

• Indicates easing pressure on household budgets.
• Supports RBI’s stance of maintaining a neutral interest rate policy.
• Reflects improved supply chain conditions post-pandemic and better food availability.
• Helps anchor inflation expectations and boosts investor confidence.