A report states that inflation is expected to dip to 3.27 per cent in April from 3.34 per cent in March 2025
India’s consumer or retail inflation is likely to have cooled down to a near six-year low in April 2025, led by a further easing in food price rises, as per a report by Reuters. This is expected to keep the retail inflation below the Reserve Bank of India’s (RBI) four per cent medium-term target for three consecutive months, the report stated.
The report highlighted that food prices account for around half of the consumer price basket. The Reuters poll of economists revealed that the inflation is likely to fall to 3.27 per cent in April as compared to 3.34 per cent in March 2025.
Core inflation, which does not take volatile items into account, may have moderated to four per cent in April on a year-on-year (YoY) basis. The survey also showed that the wholesale price index-based inflation is likely to have eased to 1.76 per cent last month, from 2.05 per cent in March.
Earlier, a report by India Ratings and Research (Ind-Ra) also stated that driven by sustained slowdown in food inflation, the retail inflation is likely to have declined to 3.2 per cent in April 2025 which would be the lowest since July 2019.
Prices of key food items such as tomato, onion, potato, pulses and rice, based on the daily retail price data from the Department of Consumer Affairs, decreased 34.2 per cent year-on-year (YoY), 5.7 per cent YoY, 11.3 per cent YoY, 5.2 per cent YoY and four per cent YoY, respectively, in April 2025, as per the report.
Furthermore, the Ind-Ra report stated that the agriculture sector growth is likely to have strengthened to a two-year high of seven per cent YoY in Q4FY25, due to the combination of a low base effect and good rabi harvesting
