India’s Inflation Falls Below 4% for the First Time in Six Months

India’s retail inflation rate dropped to 3.61% in February 2025, marking the lowest level in six months. This decline, largely driven by falling food prices, has raised hopes for interest rate cuts by the Reserve Bank of India (RBI).

Key Economic Factors

• Vegetable and grain prices saw a sharp drop, easing cost-of-living pressures.

• Core inflation, which excludes food and energy, remains steady, suggesting some price stability.

• Global oil prices have stabilized, reducing inflationary risks for energy imports.

What This Means for India?

Lower inflation gives the RBI flexibility to reduce borrowing costs, which could boost investment and spending in the coming months. If this trend continues, analysts expect the central bank to cut interest rates later this year.