India's retail inflation dropped to 3.6% in February 2025, the lowest in seven months.
This decline was mainly due to lower food prices, particularly for vegetables, pulses, and eggs.
January 2025 inflation was 4.26%, showing a continuous decline for the fourth month.
The inflation rate is now below the Reserve Bank of India's (RBI) target of 4%, raising the possibility of a 0.25% repo rate cut by the RBI next month.
Food inflation slowed to 3.75%, the slowest in almost two years, with vegetables seeing a price decrease.
Wheat prices rose by 8.8%, and pulses saw negative inflation (-1.35%) for the first time.
Inflation for urban areas was 3.3%, while in rural areas it dropped to 3.8%.
Kerala had the highest inflation (7.3%), while Telangana had the lowest (1.3%).
The variation in inflation across states is mainly due to different food price changes.
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