India’s retail inflation based on All India Consumer Price Index (CPI) eased to 3.34% in March on the back of softening food prices. This is the lowest year-on-year inflation after August 2019.

The country's headline inflation witnessed a decline of 27 basis points in March 2025 compared with 3.61% in February.

The significant decline in headline inflation and food inflation during the month of March is mainly attributed to the decline in inflation of vegetables, eggs, pulses and products, meat and fish, cereals and products and milk and products, said the Ministry of Statistics & Programme Implementation.

The softening of inflation comes on the day when India Meteorological Department (IMD) has forecast the southwest monsoon seasonal (June to September) rainfall over the country to be above normal.

The top five items showing the highest year-on-year Inflation at All India level in March, 2025 are coconut oil (56.81%), coconut (42.05%), gold (34.09%), silver (31.57%) and grapes (25.55%).

The key items having the lowest year-on-year inflation in March, 2025 are ginger (-38.11%), tomato (-34.96%), cauliflower (-25.99%), jeera (-25.86%) and garlic (-25.22%).

The inflation rate for rural and urban are 2.82% and 2.48%, respectively.

A sharp decline of 106 basis point was observed in food inflation in March in comparison to February. The food inflation in March is the lowest after November 2021. The year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of March 2025 over March 2024 stood at 2.69%.

A sharp decline in headline and food inflation in rural sector was observed in March. The headline inflation was 3.25% in March while the same was 3.79% in February, 2025. The CFPI-based food inflation in the rural sector is observed as 2.82% in March in comparison to 4.06% in February.

Urban inflation saw a marginal increase from 3.32% in February to 3.43% in March.

The year-on-year housing inflation rate for the month of March is 3.03%. Inflation rate for the month of February was 2.91%. The housing index is compiled for the urban sector only.

The year-on-year fuel and light inflation rate for the month of March stood at 1.48%. The inflation rate for the month of February was -1.33%. It is the combined inflation rate for both rural and urban.

The year-on-year education inflation rate for the month of March is 3.98%.  The inflation rate observed in the month of February, 2025 was 3.83%. It is the combined education inflation for both rural and urban areas.

The year-on-year health inflation rate for the month of March is 4.26%. The inflation rate for the month of February was 4.12%.

The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.05% for the month of March. The positive rate of wholesale inflation in March is primarily due to increase in prices of manufacture of food products, other manufacturing, food articles, electricity and manufacture of textiles etc.