India's retail inflation fell below 4% in February for the first time in six months mainly due to a decline in vegetable prices, giving the central bank room to cut rates further in coming meetings.

India’s retail inflation dropped sharply to 3.61% in February 2025, falling below the 4% mark for the first time in six months, driven by lower vegetable prices. The RBI may have room for a potential policy rate cut as inflation is expected to remain below target.

India's inflation outlook improved significantly in February 2025, with the CPI inflation rate dropping to 3.61%. This marks the lowest level since July 2024, providing relief amidst economic challenges.