The inflation rate in India has fallen below 4% for the first time in six months as vegetable prices dropped.
Inflation in the world’s most populous nation dropped to 3.61% in February from 4.26% in January, the country’s Ministry of Statistics and Programme Implementation said in a media release on Wednesday.
It was the lowest year-on-year increase in the consumer price index (CPI) since July 2024 and below the Reserve Bank of India's (RBI) medium-term target of 4.0% and the 3.98% forecast of economists surveyed by Reuters.
The Ministry said food inflation, a key constituent of the country’s CPI, plunged to 3.75% from 5.97% in January with vegetable prices dropping by an annual 1.07%.
The result was driven by the arrival of fresh winter produce in markets over the past few months, according to media reports.
Food prices had soared last year in India due to supply disruptions arising from monsoons and high temperatures.
Economists said the RBI was planning to cut rates in April to support slowing economic growth, following a quarter-point reduction in February, given the CPI is within its 2–6% target range.
