Synopsis
New Delhi, April 16 (NationPress) India's retail inflation has reached a six-year low, revealing that the average annual inflation from 2004-05 to 2013-14 was 8.2%. This period was marked by significant retail price volatility, heavily impacting household savings and purchasing power amid soaring food and fuel prices.Key Takeaways
- Average annual inflation from 2004-05 to 2013-14 was 8.2%.
- High inflation diminished purchasing power and challenged consumers.
- From 2015–16 to 2024–25, inflation averages dropped to 5%.
- Coordinated efforts improved price stability.
- Retail inflation fell to 4.6% in FY 2024-25.
New Delhi, April 16 (NationPress) With India's retail inflation reaching a six-year low in March, recent government data revealed that the average annual inflation from 2004–05 to 2013–14 was at 8.2 percent. This period was characterized by significant fluctuations in retail prices, which resulted in households across the nation suffering due to rising food and fuel costs.
The Ministry of Finance reported that from 2009-10 to 2013–14, India experienced a prolonged phase of elevated inflation, with the average annual rate consistently in double digits.
This situation diminished purchasing power and created a tough landscape for both consumers and businesses.
“In stark contrast, the decade from 2015–16 to 2024–25 has seen a substantial reduction in inflation pressures, with the average rate dropping to 5 percent,” the ministry stated.
This notable decrease signifies the ongoing efforts of both the government and the Reserve Bank of India to enhance price stability through improved supply-side management, fiscal responsibility, and an inflation-targeting monetary policy.
“The transition from a high-inflation period to a more stable pricing environment has offered greater certainty for consumers and laid a stronger foundation for long-term economic growth,” the ministry noted.
The consistent reduction in retail inflation over recent years marks a pivotal achievement in India’s economic progress, showcasing the success of collaborative endeavors by the government.
From proactive monetary strategies to specific fiscal policies that protect consumers, particularly the vulnerable, from unpredictable price fluctuations, the approach has proven to be both inclusive and effective.
“With inflation currently at its lowest since 2018–19, India has not only reinforced macroeconomic stability but also established a conducive environment for sustainable growth. This path highlights the nation’s resilience and dedication to maintaining price stability while pursuing development objectives,” the ministry emphasized.
Retail inflation in India, as gauged by the Consumer Price Index (CPI), which indicates the cost of everyday goods and services, dropped to an impressive 4.6 percent in the fiscal year 2024-25, the lowest since 2018-19.
Moreover, the year-on-year inflation rate for March 2025 decreased to 3.34 percent, a reduction of 27 basis points from February 2025, representing the lowest monthly inflation rate since August 2019.
