The central government has taken the credit as retail inflation reached a six-year low level of 4.6% in Fiscal Year 2024-25. In a press statement, the finance ministry said that the government has demonstrated a sustained effort to curb price rises while fostering economic growth.

The central government said that the declining trend in inflation has helped ease cost-of-living pressures and fostered a more stable environment for economic growth.

“With inflation now at its lowest since 2018–19, India has not only reinforced macroeconomic stability but also created an enabling environment for sustainable growth,” read the statement of the Ministry of Finance.

The ministry said that this trajectory underscored the country’s resilience and commitment to ensuring price stability without compromising on development goals.

India’s consumer price index (CPI)-based retail inflation in March has come down to 3.34% because of a sharp decline in food prices and a high base effect.

Moreover, year-on-year food inflation based on the Consumer Food Price Index (CFPI) stood at 2.69% in March 2025. This was the lowest level, since November 2021. Food prices moderated on the back of the declining inflation in key categories, including vegetables, eggs, pulses, meat and fish, cereals, and dairy products.

The Finance Ministry attributed the sustained moderation in prices to the combined efforts of the RBI’s measured monetary policy and the government’s targeted interventions aimed at easing supply chain issues and stabilizing essential commodity prices.

“This milestone highlights the effectiveness of the Reserve Bank of India’s pro-growth monetary policy, which has successfully balanced economic expansion with price stability,” read the Finance Ministry’s statement.