Regulatoryrates
Retail Inflation (CPI) Eases to 3.65%: Core Inflation Drops Across Urban and Rural Centers
Yesterday, 05:30 PM IST•3 min read•Source: Ministry of Statistics & Programme Implementation (MoSPI)
Quick Executive Summary
- •Headline CPI inflation recorded at 3.65%, the lowest print in over four years.
- •Vegetable and pulses price cooling drove rural and urban disinflation.
- •Real post-tax returns on bank FDs and sovereign bonds turn positive for savers.
India's retail inflation based on the Consumer Price Index (CPI) moderated sharply to 3.65%, according to official data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
The moderation brings inflation comfortably below the Reserve Bank of India's 4.0% median target band, marking a significant victory in monetary policy transmission.
Crucially for savers, a 3.65% inflation print combined with 7.25% bank fixed deposit rates means real returns (returns after inflation) are firmly positive at +3.60% before taxes, making conservative fixed-income instruments genuinely wealth-preserving.