India’s retail inflation, measured by the Consumer Price Index (CPI), eased to 3.16% in April 2025, its lowest year-on-year level since July 2019, according to provisional government data released on Tuesday.

The 18-basis point decline from March’s 3.34% reading reinforces the ongoing disinflationary trend, providing renewed relief for policymakers.

The drop was primarily driven by a significant decrease in food inflation, which fell to 1.78% in April from 2.69% the previous month, a 91-basis point slide and the lowest level recorded since October 2021, CNBC TV18 reports.

Prices of key essentials such as vegetables, pulses, fruits, cereals, meat and fish, along with personal care items, saw a notable slowdown in April.

“Inflation inched down to 3.16% in April on the back of a continuous broad-based drop in food prices, including of vegetables, cereals and pulses. The CPI print today sets the stage for another rate cut by the RBI (Reserve Bank of India) in its June meeting, of 25 basis points,” stated Sakshi Gupta, principal economist, HDFC Bank, Gurugram.

“Looking ahead, inflation is expected to remain close to 3% over the coming two months. The expectation of an above-normal monsoon and low commodity prices bodes well for the inflation trajectory through the year. We expect inflation to average at 3.7% in fiscal 2026.”

Rural inflation experienced a sharper decline, easing to 2.92% from 3.25% in March. Whereas rural food inflation dropped significantly to 1.85%, down from 2.82%. In urban areas, overall inflation edged down to 3.36% from 3.43%, while urban food inflation saw a steeper fall to 1.64%, compared to 2.48% in the previous month.

Among major components, housing inflation remained steady at 3.00%, slightly down from 3.03% in March. Whilst education inflation edged higher to 4.13% from 3.98%, and health inflation was unchanged at 4.25%.

Furthermore, fuel and light inflation saw a notable rise, climbing to 2.92% from 1.42% the previous month. Transport and communication costs also increased, with inflation in this category rising to 3.73% from 3.36%.