FX.co ★ India Inflation Rate Falls to Near 6-Year Low

In April 2025, India's annual inflation rate decreased to 3.16% from 3.34% in March, surpassing market forecasts that anticipated a rate of 3.3%. This marks the sixth consecutive month of declining inflation and represents the lowest rate since July 2019. The inflation rate has now fallen significantly below the Reserve Bank of India's target midpoint of 4%, paving the way for potential additional interest rate cuts by the central bank. Notably, food prices, which constitute nearly half of the consumer price index, experienced their slowest growth in three and a half years, dropping to 1.78% from 2.69% in March. Meanwhile, inflation for housing remained relatively steady at 3.00%, slightly down from 3.03%, while the inflation rate for fuel and light increased significantly to 2.92% from 1.48% due to the base effects that counterbalanced the reduced energy prices in the wholesale market. On a month-to-month basis, consumer prices increased by 0.31%, recovering from the previous month's 0.26% decline and ending a streak of five consecutive monthly decreases in the Consumer Price Index (CPI).