The Consumer Price Index (CPI) figures for April 2025 mark a significant moment in India's inflation trends. According to the latest data, the year-on-year headline inflation rate stood at 3.16% (provisional), the lowest since July 2019. This reflects an 18 basis point decline from the 3.34% recorded in March 2025.

Headline Inflation Trends

The year-on-year inflation based on the All India Consumer Price Index (CPI) for rural areas dropped from 3.25% in March to 2.92% in April. Urban inflation saw a slight dip from 3.43% to 3.36%. Overall, the combined inflation stood at 3.16% in April, compared to 3.34% in March.

Food Inflation

The Consumer Food Price Index (CFPI) showed a sharp drop to 1.78% in April 2025 from 2.69% in March, marking the lowest food inflation since October 2021. Rural food inflation was recorded at 1.85% and urban at 1.64%. The sharp fall of 91 basis points month-on-month was largely driven by the reduction in prices of vegetables, pulses, fruits, meat and fish, cereals, and personal care items.

Segment-wise Inflation Overview

1. Rural Inflation: Headline CPI in rural India was 2.92% in April, down from 3.25% in March. Food inflation declined to 1.85% from 2.82%.

2. Urban Inflation: The urban headline inflation fell slightly to 3.36% in April from 3.43% in March. Urban food inflation experienced a sharper fall to 1.64% from 2.48%.

3. Housing: Inflation stood at 3.00% in April, a marginal decrease from 3.03% in March.

4. Education: Year-on-year education inflation was 4.13%, down slightly from 3.98%.

5. Health: The health inflation rate came in at 4.25%, just below March’s 4.26%.

6. Transport & Communication: Inflation in this segment rose to 3.73% from 3.36%.

7. Fuel & Light: Inflation surged to 2.92% in April, up from 1.42% in March.

Top 5 States with Highest Year-on-Year Inflation in April 2025

Among states with populations exceeding 50 lakhs, Kerala led with the highest inflation at 5.94%, followed by Karnataka (4.26%), Jammu & Kashmir (4.25%), Punjab (4.09%), and Uttarakhand (3.81%).

State-wise CPI Overview

Kerala showed the highest combined index value at 207.0, followed by Tamil Nadu (202.2) and Karnataka (200.6).

States like Rajasthan and Madhya Pradesh also experienced above-average inflation, with respective combined indices at 198.5 and 191.3.

At the national level, the All India Combined CPI Index was recorded at 192.6 for April 2025.

Commodity-Wise Highlights

Vegetables recorded a steep deflation of -10.98%, followed by pulses and products (-5.23%) and spices (-3.40%).

On the other hand, oils and fats (17.42%), fruits (13.80%), and personal care and effects (12.90%) witnessed the highest inflation.

The overall inflation in the food and beverages group was 2.14%, with clothing and footwear at 2.67%, and housing at 3.00%.

Miscellaneous items showed a notable inflation rate of 5.02%, indicating price pressures in services and non-essential goods.

News By Sensexnifty.com team