India’s February 2025 Inflation Data: Decline in Food Prices

The Ministry of Statistics and Programme Implementation (MoSPI) on March 12^th  2025 has released the Consumer Price Index (CPI) and inflation data for February 2025.

1. Overall Inflation Trends

The inflation rate for February 2025, measured on a year-on-year basis compared to February 2024, stands at 3.61% (provisional). This is a significant drop from the previous month’s inflation rate of 4.26%, marking the lowest inflation rate since July 2024.

2. Food Inflation Declines

The Consumer Food Price Index (CFPI) reveals food inflation for February 2025 at 3.75%, a considerable decrease from 5.97% in January 2025. Notably, the inflation rate in food items decreased significantly across both rural and urban areas:

• Rural food inflation stands at 4.06%.

• Urban food inflation is recorded at 3.20%.

This decline is driven by falling prices in food items such as vegetables, eggs, meat, fish, pulses, and milk products, marking the lowest food inflation since May 2023.

3. Rural vs. Urban Inflation

• Rural Inflation: The overall inflation for rural areas decreased from 4.59% in January 2025 to 3.79% in February 2025.

• The decline in food inflation from 6.31% to 4.06% plays a major role in this drop.

• Urban Inflation: Urban areas saw inflation reduce from 3.87% in January 2025 to 3.32% in February 2025.

• The urban food inflation decreased significantly from 5.53% in January to 3.20% in February.

4. Sectoral Inflation Overview

Below is a breakdown of inflation by different sectors for February 2025:

• Housing Inflation: This stands at 2.91%, slightly up from 2.82% in January 2025.
• Fuel & Light: A continued decrease in fuel prices results in -1.33% inflation for this category.
• Health: The inflation rate for health-related expenses has risen slightly to 4.12%, up from 3.97% in January.
• Education: The education sector remains steady at 3.83%, unchanged from last month.
• Transport & Communication: Inflation in this sector saw a minor increase, from 2.76% in January to 2.87% in February.

5. Top Inflation Items

Several items have seen sharp increases in prices over the past year. These include:

• Coconut oil: 54.48%
• Coconut: 41.61%
• Gold: 35.56%
• Silver: 30.89%
• Onions: 30.42%

Conversely, some items have experienced negative inflation, with prices dropping:

• Ginger: -35.81%
• Jeera: -28.77%
• Tomato: -28.51%
• Cauliflower: -21.19%
• Garlic: -20.32%

6. State-wise Inflation Trends

Inflation varies significantly by state, reflecting regional differences in price changes. For example:

• Andhra Pradesh recorded rural inflation at 3.64%, while urban inflation stood at 4.58%.
• Bihar saw a combined inflation rate of 5.14%, with notable differences between rural and urban inflation rates.

7. Monthly Changes in CPI and CFPI

When comparing February 2025 to January 2025, the month-over-month changes in CPI and CFPI are as follows:

Conclusion

The inflation data for February 2025 presents a positive outlook, particularly with the significant reduction in food inflation. The overall inflation decline, especially in the rural and urban sectors, brings much-needed relief to consumers, as prices of essential commodities stabilize.

While some sectors like health and housing still show moderate inflation, the broader economic environment seems to be improving. The drop in food inflation, in particular, is expected to ease the financial pressure on households.

For further updates, you can visit the official websites of the Ministry of Statistics and Programme Implementation:

www.cpi.mospi.gov.in

esankhyiki.mospi.gov.in.