The National Statistics Office (NSO) of the Ministry of Statistics and Programme Implementation has released the Consumer Price Index (CPI) data for February 2025.
Key Highlights of CPI for February 2025
1. Decline in Headline Inflation
The year-on-year (YoY) inflation rate based on All India CPI for February 2025 is 3.61% (Provisional).
This marks a 65 basis points (bps) decline from 4.26% in January 2025, making it the lowest inflation recorded since July 2024.
2. Food Inflation Hits a New Low
The Consumer Food Price Index (CFPI) inflation for February 2025 is 3.75%.
A sharp decline of 222 bps in food inflation is observed compared to January 2025 (5.97%).
This is the lowest food inflation since May 2023.
3. Rural vs. Urban Inflation
Rural inflation decreased from 4.59% in January to 3.79% in February.
Urban inflation fell from 3.87% to 3.32%.
The drop in food prices significantly contributed to this downward trend.
4. Housing, Fuel, and Other Sectors
Housing inflation stood at 2.91%, slightly up from 2.82% in January.
Fuel & Light inflation recorded a negative rate of -1.33%, improving from -1.49% in January.
Education inflation remained unchanged at 3.83%.
Health inflation rose slightly to 4.12% from 3.97% in January.
Transport & Communication inflation increased marginally to 2.87%.
5. Categories with Highest and Lowest Inflation
Top 5 items with highest YoY inflation:
Coconut oil (54.48%)
Coconut (41.61%)
Gold (35.56%)
Silver (30.89%)
Onion (30.42%)
Top 5 items with lowest YoY inflation:
Ginger (-35.81%)
Jeera (-28.77%)
Tomato (-28.51%)
Cauliflower (-21.19%)
Garlic (-20.32%)
6. State-Wise Inflation Trends
Top 5 major states with the highest inflation in February 2025:
Kerala (7.31%)
Chhattisgarh (4.89%)
Karnataka (4.49%)
Bihar (4.47%)
Jammu & Kashmir (4.28%)
7. Key Factors Contributing to Inflation Trends
The sharp decline in inflation was driven by lower prices of vegetables, eggs, meat & fish, pulses, and milk & dairy products.
Fuel prices remained subdued, contributing to overall lower inflation.
Housing and education costs remained stable, while healthcare and transport prices showed a slight increase.
8. Future Outlook
The next CPI report for March 2025 is scheduled for release on April 14, 2025.
Given the current downward trend, policymakers may continue to monitor food and fuel prices closely.
Monetary policy adjustments by the Reserve Bank of India (RBI) will be influenced by these inflation trends.
The latest CPI data for February 2025 indicates a significant cooling down of inflation, providing some relief to consumers. The decline in food prices has played a crucial role, while fuel and housing costs remain key areas to watch. The economic outlook appears stable, but future trends will depend on global commodity prices, monsoon conditions, and government policies.
Disclaimer
This blog is based on publicly available data released by the Ministry of Statistics and Programme Implementation, Government of India. The information provided is for educational and informational purposes only and does not constitute financial or investment advice .