New Delhi: The highly anticipated inflation report from the United States indicates a decrease in the headline Consumer Price Index (CPI), which now stands at 2.8 percent year-on-year, down from 3 percent in January, according to data released by the US Bureau of Labor Statistics.
This CPI figure is lower than the anticipated 2.9 percent and represents the lowest level since November of the previous year. Month-on-month, inflation increased by 0.2 percent, which is softer than the expected 0.3 percent rise.
The Core CPI for February rose by 3.1 percent year-on-year, with a month-on-month increase of 0.2 percent.
It is widely believed that the declining CPI inflation may prompt the Federal Reserve to consider lowering interest rates. This decrease in CPI has instilled confidence among investors regarding the US economy.
Experts and investors were keenly awaiting the US inflation data, as it will influence the next steps for markets and economies globally, impacting economic activities in various countries.
In contrast, India's inflation outlook showed notable improvement in February 2025, with the year-on-year Consumer Price Index (CPI) inflation rate at 3.61 percent, a decrease of 65 basis points from the previous month.
This represents the lowest inflation rate since July 2024, providing relief to consumers in a challenging economic environment.
The February inflation data, published by the Ministry of Statistics and Programme Implementation, indicates a significant reduction in price pressures, especially in the food sector.
The All India Consumer Food Price Index (CFPI) reported a year-on-year inflation rate of 3.75 percent in February 2025, reflecting a significant decrease of 222 basis points from January 2025. This figure represents the lowest level of food inflation since May 2023.
Conversely, India's Index of Industrial Production (IIP), which gauges industrial output, showed a growth of 5.0 percent compared to the same month last year.
This increase indicates a notable acceleration from the 3.2 percent growth recorded in December 2024, according to preliminary estimates released by the ministry.
