Holi cheers for economy! Cooling inflation and rate cut bets may add to India’s celebrations

economy? check.
As you continue to gather your gulal and stock up on sweets, there is another reason to celebrate Holi this year—the Indian economy is bringing its own splash of colors to the festival.
With inflation cooling, EMIs likely to get cheaper, and a fresh dose of tax relief from the government, there’s more than just festive spirit in the air.

So, as you vibe on “Balam Pichkari" or «Do me a favor, let’s play Holi!”—here’s how the economy is setting the perfect backdrop for a vibrant, cheerful celebration.

Cooling prices leading to warm smiles

This Holi, there’s good news straight from your kitchen—sweets and festive treats might be a bit lighter on your pockets this time around.

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India’s retail inflation cooled to a seven-month low of 3.61% in February, down from 4.31% in January. And what's the reason? A significant drop in food inflation, which makes up a major chunk of the consumer price index basket (used to calculate retail inflation).
The food inflation saw a significant decline from 5.97% to 3.75% in February, with essential Holi staples like cereals and dairy seeing price dips.
Cereal inflation eased to 6.10% from 6.24%, while milk and dairy products fell to 2.68% from 2.85%. So, whether it’s gujiyas, malpuas, or thandai, expect your festive feast to taste just as sweet!

In January, the Economic Survey for 2024-25, released by the government, had projected that food inflation would ease in the final quarter of FY25, and this cooling trend only adds to the festive cheer.

Colourful days for borrowers

Ahead of blue, green, red and other colours taking over the streets, the RBI had given homebuyers and borrowers something to cheer about—cheaper EMIs could be coming soon! In a move