India Inflation Rate

Last Release

Feb 28, 2025

Actual

3.61

Units In

4.31

Frequency

Monthly

Next Release

Apr 11, 2025

Time to Release

28 Days 12 Hours

Highest	Lowest	Average	Date Range	Source
12.17 Nov 2013	1.54 Jun 2017	5.9 %	2012-2025	Ministry of Statistics and Programme Implementation (MOSPI)

In 2013, the consumer price index replaced the wholesale price index (WPI) as a main measure of inflation. In India, the most important category in the consumer price index is Food and beverages (45.86 percent of total weight), of which Cereals and products (9.67 percent), Milk and products (6.61 percent), Vegetables (6.04 percent), Prepared meals, snacks, sweets, etc. (5.55 percent), Meat and fish (3.61 percent), and Oils and fats (3.56 percent). Miscellaneous accounts for 28.32 percent, of which Transport and communication (8.59 percent), health (5.89 percent), and education (4.46 percent). Housing accounts for 10.07 percent; Fuel and light for 6.84 percent; Clothing and footwear for 6.53 percent; and Pan, tobacco and intoxicants for 2.38 percent. Consumer price changes in India can be very volatile due to dependence on energy imports, the uncertain impact of monsoon rains on its large farm sector, difficulties transporting food items to market because of its poor roads and infrastructure and high fiscal deficit.

Latest Updates

India’s annual inflation rate dropped to 3.62% in February 2025, down from a revised 4.26% in the previous month, significantly undershooting market expectations of a 4% decline. This marked the slowest rise in consumer prices since July of the previous year and the first time in six months that inflation fell below the Reserve Bank of India’s 4% mid-point target. The decline aligns with the RBI’s decision to initiate the country’s rate-cutting cycle and implement a series of liquidity-boosting measures for state banks. Inflation fell sharply for food (3.75% vs 5.97% in January), which accounts for nearly half of the Indian price basket, amid deflationary pressure for eggs, spices, vegetables, and pulses. Also, prices fell for fuel and light (-1.33%) and remained soft for housing (2.91%), although inflation was more elevated for miscellaneous goods (4.78%). Prices fell by 0.47% from the previous month, extending the revised 1% drop in January, the 4th consecutive period of deflation.