In April 2025, retail inflation in India reaches a six-year low. Learn more!

Main discoveries

The All India Consumer Price Index (CPI) - Combined for April 2025 compared to April 2024 is 3.16%, marking the lowest year-on-year inflation since July 2019.

CPI assesses the average alteration in prices that consumers pay over time for a selection of goods and services.

CPI – Combined includes both CPI- Urban and CPI – Rural.

In India, the National Statistical Office (NSO) under the MoSPI compiles the CPI.

♦ It is presently computed using the base year 2012.

Core inflation: Increased marginally to 4.1% but remains comfortably within the ceiling of RBI's inflation objective.

Causes of reduced inflation

Reducing food costs: The decline in prices has been caused by significantly by drastically reducing food costs, particularly those of legumes and vegetables.

Decrease in prices of non-food items: Inflation in the housing category and the tobacco, intoxicants, and pan category observed a decrease in inflation in April, in contrast to March.

Rural Inflation: Notable drop in overall and food prices Inflation in the agricultural sector noted as the main point.

Inflation stands at 2.92%, down from 3.25% in March.

Important Terms

Inflation: Inflation refers to the pace at which prices rise over a specified duration. Inflation is generally a comprehensive indicator, like the general rise in costs or the rise in the expenses for living in a nation.

Headline inflation: It indicates fluctuations in the costs of a representative assortment of products and services that households purchase, as indicated by the consumer price index (CPI). The CPI encompasses prices for numerous goods, encompassing Fuel and light, Housing, Food and drinks,

Core inflation: It omits food and energy products from headline inflation, which tends to be more unstable.