Retail inflation at 6-year low: Key highlights from consumer price index for March 2025

India’s headline inflation rate dropped to 3.34% in March 2025, the lowest since August 2019. This marked a 27 basis point decline from February, registering its lowest level in nearly six years, driven by falling prices of vegetables and protein-rich food items.

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Food inflation, a key component of the CPI, also eased to 2.69% in March from 3.75% in February. In comparison, food inflation was 8.52% in March 2024.

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Rural India saw a major drop in headline inflation, down from 3.79% in February to 3.25% in March 2025. Food inflation also declined significantly, from 4.06% to 2.82%.

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Urban inflation rose slightly to 3.43% in March from 3.32% in February. However, urban food inflation dropped significantly, from 3.15% to 2.48%.

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Fuel and light inflation returned to positive territory at 1.48% in March 2025, after being at -1.33% in February.

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Education inflation rose to 3.98%, while health inflation increased to 4.26% in March 2025. It is the combined education inflation for both rural and urban sector.

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Housing inflation stood at 3.03% in March 2025, up from 2.91% in February. The housing index, which is calculated exclusively for urban areas, showed a modest increase month-on-month.

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​Transport and communication inflation rose from 2.93% in February to 3.30% in March 2025. The corresponding inflation rate for February, 2025 was 2.93%.

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