India’s Inflation Holds Steady at 3.60% in March 2025 After Four-Month Decline
Date: 09-apr-2025
Photo by Aarti Krishnan
Consumer inflation in India held steady at 3.60% in March 2025, marking the end of a four-month consecutive decline. The latest inflation figures signal a period of stabilization, largely driven by an increase in gold prices while food costs showed minimal variation.
End of the Downtrend in Retail Prices
According to data from the Ministry of Statistics and Programme Implementation, the Consumer Price Index (CPI) in March showed no significant change from February’s reading, which was also 3.60%. This suggests that the easing trend in inflation has paused for the moment, potentially reflecting both seasonal trends and global commodity movements.
Gold Prices Rise, Food Prices Stay Flat
Economists noted that a surge in domestic and international gold prices contributed to inflationary pressure in the non-food category. Meanwhile, food inflation—which had been a primary driver earlier in the year—remained largely subdued in March, with stable prices across staples like rice, wheat, and pulses.
Also Read
Monetary Policy Implications
The Reserve Bank of India is expected to closely consider this stabilization in CPI inflation as it finalizes its monetary policy stance. With global uncertainties—including new U.S. tariffs—still weighing on the Indian economy, the RBI may continue its accommodative approach to support growth while keeping inflation under control.
Sector-Wise Breakdown
- Food & Beverages: 3.3% inflation rate — steady compared to February
- Fuel & Light: Minor decline due to lower LPG and petrol prices
- Gold and Jewelry: Significant increase, driven by international demand
- Clothing & Footwear: Moderate price rise amid seasonal change
- Housing: Stable rent and construction costs in major urban centers
Outlook for April and Beyond
Experts suggest that inflation could stay within the 3.5%–4% band over the next few months, barring any major shocks in energy or global food supply. With the summer season approaching, demand patterns may shift, and weather conditions could also influence food prices.
For now, the government and the RBI appear to have room for cautious optimism as inflation remains well within the 4% target set under India’s flexible inflation framework.
💬 Leave a Comment
📝 Recent Comments
No comments yet! Be the first one to comment.
🔄 Read More
⬅ Previous: RBI May Cut Interest Rates Again to Counter Impact of 26% U.S. Tariffs
Date: 09-Apr-2025
The Reserve Bank of India may announce a second rate cut in April 2025 to offset economic pressure from new U.S. tariffs on Indian imports.
Next: New Aadhaar App Launched with Face ID and QR Code Features to Replace Physical Card ➡
Date: 09-Apr-2025
The government unveils a new Aadhaar mobile app with Face ID and QR code authentication, removing the need for physical cards and photocopies.
