What percentage did CPI inflation touch in April 2025 in India, marking a near six-year low?

Correct option is A

The correct answer is (a) 3.16%

Explanation:
• In April 2025, India's Consumer Price Index (CPI) based retail inflation dropped significantly to 3.16%.
• This figure marked a near six-year low, providing substantial relief to policymakers and the general public.
• The decline was primarily driven by a sharp cooling in food prices and a favorable base effect from the previous year.
• This level was well within the Reserve Bank of India’s (RBI) comfort zone of 2% to 6%.
• Lower inflation often paves the way for the RBI to consider interest rate cuts to boost economic growth.

Information Booster:
• CPI inflation is the primary anchor for monetary policy in India, monitored by the Monetary Policy Committee (MPC).
• The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, is responsible for releasing CPI data monthly.

Additional Knowledge:
5.26% (Option b)
• This would represent a relatively high inflationary environment, far from a six-year low.
4.2% (Option c)
• While 4.2% is often the ideal target for the RBI, the specific 'six-year low' recorded in April 2025 was the much lower 3.16%.
6.2% (Option d)
• This exceeds the upper tolerance limit of the RBI and would signify high price instability.

So the correct answer is (a)