Food inflation rate falls to 41-month low

14-May-2025 02:00 PM

New Delhi. The retail food inflation rate dropped to 1.78 percent in April 2025 due to a decrease in the prices of vegetables, pulses, and spices.

This marks the sixth consecutive month of decline. However, inflation remained high in the categories of edible oils and fruits.

Food inflation based on the Consumer Price Index also fell by 0.153 percent in April compared to March. In contrast, the food inflation rate was 8.7 percent in April 2024. The April 2025 figure represents the lowest food inflation rate since October 2021, when it stood at 0.95 percent.

Inflation in the vegetable category fell by 7.04 percent in March and further declined by 10.98 percent in April. On the other hand, edible oil prices remained elevated, with inflation at 17.42 percent, and fruit inflation stood at 13.8 percent. According to analysts, food inflation is likely to remain low in May and June as prices of many food items are expected to stay soft.

The inflation rate in cereals was recorded at 5.35 percent in April and has remained in single digits for several months. Due to strong rice and wheat production, grain prices have softened. However, wheat inflation was 7.61 percent in April after a price increase of about 9 percent in March.

In April, mustard oil registered a high inflation rate of 19.6 percent and refined edible oil saw an even higher rate of 23.75 percent, driven by rising prices in the global market. India imports approximately 58 percent of its edible oil requirement from abroad.

As for pulses, the inflation rate declined for the third straight month to 5.23 percent in April. Following a good Rabi season and continued imports, prices have softened. Notably, in August 2024, the inflation rate in pulses had surged to a peak of 113 percent.

Since June 2023, retail inflation in pulses had remained in double digits due to low domestic production, leading to high market prices. Now, the market is witnessing signs of price stability or decline.