India’s

retail inflation

, measured by the Consumer Price Index (CPI), dropped to 3.16% in April 2025 from 3.34% in March — an 18 basis point decline, marking the lowest reading since July 2019. Food inflation also saw a notable drop, easing sharply to 1.78% in April from 2.69% the previous month, down by 91 basis points. This is the lowest food inflation recorded since October 2021.

The moderation in both headline and food inflation is largely driven by falling prices in key categories such as vegetables, pulses, fruits, meat and fish, cereals, and personal care products.

Urban vs rural inflation trends – April 2025
Both rural and urban sectors witnessed a decline in inflation in April 2025, with rural areas seeing a more significant drop. Rural headline inflation fell to 2.92% from 3.25% in March. The food inflation in rural areas also dropped notably, easing to 1.85% in April from 2.82% the previous month.

In urban areas, headline inflation recorded a slight dip, moving from 3.43% in March to 3.36% in April. However, urban food inflation saw a sharper decline, falling to 1.64% in April from 2.48% in March, indicating easing price pressures in essential food items for city dwellers.

Inflation trends across segmentsIn April 2025, inflation trends across key categories showed mixed movements. Housing inflation stood at 3.00%, slightly lower than March’s 3.03%, reflecting price changes in the urban sector only. Education inflation rose to 4.13% from 3.98% in March, while health inflation remained relatively steady at 4.25% compared to 4.26% the previous month. Transport and communication inflation increased to 3.73% from 3.36%, and fuel and light inflation saw a sharp jump, doubling from 1.42% in March to 2.92% in April.

Top states with highest inflation rates

Among major Indian states with populations exceeding 50 lakh (as per the 2011 Census), Kerala recorded the highest year-on-year inflation at 5.94%. It was followed by Karnataka at 4.26%, Jammu and Kashmir at 4.25%, Punjab at 4.09%, and Uttarakhand at 3.81%. These figures reflect regional disparities in consumer price pressures, with southern and northern states showing relatively higher inflation rates.

Movement of CPI Inflation so far:

Inflation trends in commodities
The top five items showing highest year on year Inflation at All India level in April 2025 are gold (30.89%), refined oil (23.75%), silver (23.33%), mustard oil (19.60%), and apple (17.07%).

The key items having lowest year on year inflation in April, 2025 are tomato (-33.21%) , jeera (-20.79%), arhar, tur (-14.27%), potato (-12.17%), and chicken (-6.78%).