India’s CPI inflation was -0.47% MoM and 3.61% YoY in February, down from 4.26% YoY and below expectations of a reading around 4.00% YoY.

• The Consumer Food Price Index fell -1.99% MoM, and the annual rate eased from 5.97% YoY in January to 3.75% YoY in February.
• The significant decline in headline inflation and food inflation during the month of February, 2025 is mainly attributed to decline in inflation of “Vegetables, Egg, Meat & Fish”, “Pulses & Products” and “Dairy”.
• Energy prices continue to have a deflationary effect as the “Fuel & Light” category is down -1.33% YoY.