Retail Inflation Hits 7-Month Low

In a significant economic development, India's retail inflation, measured by the Consumer Price Index (CPI), eased to a 7-month low of 3.61% in February 2025. This figure falls comfortably within the Reserve Bank of India's (RBI) target range, potentially paving the way for a repo rate cut in the upcoming April review to stimulate GDP growth.

Food Inflation Declines Substantially

Food inflation, represented by the Consumer Food Price Index (CFPI), also saw a notable decrease to 3.75% in February 2025 from the previous month. This marks the lowest level since May 2023, with rural and urban rates standing at 4.06% and 3.20%, respectively.

Industrial Production Shows Steady Growth

The Industrial Index of Production (IIP) for January 2025 recorded a growth of 5.0%, an improvement from December 2024's 3.2%. The sectors contributing to this growth include Mining at 4.4%, Manufacturing at 5.5%, and Electricity at 2.4%.