Mint Quick Edit | Inflation: In RBI’s control at last?
Subscribe to enjoy similar stories. Retail inflation in February eased to under the Reserve Bank of India’s (RBI) 4% target for the first time in six months, government data released on Wednesday showed. The consumer price index was up only 3.6% from the same month in 2024.
In January 2025, inflation was almost 4.3%. Policymakers at RBI would be heaving a sigh of relief, as the drop seems to validate their decision to cut interest rates last month in anticipation of a price cool-off. With concerns of economic growth having mounted, RBI’s next decision due in April could confirm a pivot away from inflation control to a growth-supportive monetary policy.
We have better-behaved prices of food items to thank for this. Meanwhile, the current fiscal year is likely to end with weaker output expansion than in the previous three years and it’s unclear if 2025-26 will mark a turnaround. Fiscal policy has attempted to do its bit, with the Union budget unveiling tax cuts to stimulate demand.
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