Consumer inflation eases to 3.16% in April from 3.34% in previous month—Key takeaways from latest data

Consumer Inflation Data April 2025, India Economy News Inflation: Domestic consumer inflation came was recorded at a provisional 3.16 per cent in April, easing from 3.34 per cent in the previous month, according to official data released on Tuesday. That marked the sixth straight month of a sequential decline in retail inflation in the country. Consumer inflation, also known as retail inflation, is the rate of increase in the retail prices of select goods and services. This type of inflation is measured by the Consumer Price Index (CPI).   

Food inflation, measured by the CPI Food index, was recorded at 1.78 per cent in April, cooling down from 2.69 per cent in March, according to the official data. 

Inflation data and RBI repo rate  

The RBI tracks inflation data closely for formulating its monetary policy. 

Last month, the RBI cut the repo rate by 25 basis points (bps) to 6.0 per cent in a widely expected move, while switching to an “accommodative” stance of policy from “neutral”. That marked the central bank’s second straight downward reduction in its key lending rate. 

The MPC’s decisions to cut the repo rate as well as to change the stance were unanimous. Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks. 

While a neutral stance signals more reductions going forward, the RBI said it will keep tracking inflation numbers closely to balance consumer prices with economic growth.  

The Reserve Bank of India Governor-chaired Monetary Policy Committee started reducing COVID-era interest rates in February—its first cut since May 2020.

IMD Monsoon Rainfall Prediction 

Meanwhile, national weather forecaster IMD has predicted above-average monsoon precipitation in 2025, with rains expected to measure 105 per cent of a long-period average (LPA). The agency has also predicted the unlikelihood of El Nino conditions in this year’s monsoon, which translates to favourable conditions for above-average rainfall during the season.    

During the weekend, monsoon was reported to have reached the southern parts of Bay of Bengal, with progress expected to continue over the next 3-4 days.  

Much of the rural economy depends on monsoon rains for irrigation. This is why normal monsoon rains are crucial for economic growth in the agriculture-focused economy.