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India CPI inflation — latest rate, annual trend & the RBI target

Q: Which index measures inflation in India?

The RBI's monetary policy targets the All-India Consumer Price Index (CPI-Combined), compiled by the National Statistical Office (MOSPI) with base year 2012=100. The Wholesale Price Index (WPI) and the CPI for Industrial Workers are separate measures; the headline number the RBI watches for its target is CPI-Combined.

Q: How does inflation affect the repo rate?

When CPI inflation runs above the 4% target (or threatens to breach the 6% upper band), the RBI's MPC tends to raise the repo rate to cool demand; when inflation falls comfortably within the band, the MPC has room to hold or cut rates to support growth. So the CPI print is the single most important input into RBI rate decisions.

Quick answerIndia’s headline retail inflation (CPI-Combined, base 2012=100) averaged about 4.6% in 2024-25, down from 5.4% the year before — comfortably inside the RBI’s 4% target with a 2–6% tolerance band. The CPI print is the single most important input into the RBI’s repo-rate decisions. For the exact latest monthly figure, check the MOSPI/RBI source below.

The chart above is a visual summary; the table below carries the same figures so they are readable without JavaScript — for accessibility and AI answer engines.

CPI (Combined) annual-average inflation — 2019-20 to 2024-25

Financial year	CPI inflation	vs 2–6% band
2019-20	4.8%	within band
2020-21	6.2%	above band
2021-22	5.5%	within band
2022-23	6.7%	above band
2023-24	5.4%	within band
2024-25	4.6%	within band

Annual averages of All-India CPI-Combined (base 2012=100) year-on-year inflation, from MOSPI / RBI Handbook of Statistics on the Indian Economy 2024-25. Monthly prints vary around these averages; see the RBI source for the latest fortnightly/monthly figure.

The RBI inflation target — 4% within a 2–6% band

Target (mid-point)	4% CPI-Combined inflation over the medium term, set by the Government in consultation with the RBI.
Tolerance band	2% to 6% (target plus or minus 2 percentage points). A breach of the band for three consecutive quarters triggers a formal report from the RBI to the Government.
Who sets rates	The six-member Monetary Policy Committee (MPC) sets the policy repo rate to keep inflation around the 4% target.

What it means for bankers

CPI inflation is the anchor of the entire rate environment. When it runs hot, the RBI raises the repo rate, which lifts the external-benchmark lending rate (EBLR) on retail loans and tightens credit growth; when it falls within the band, the MPC has room to cut and ease borrowing costs. Inflation also shapes real deposit returns — if CPI is above deposit rates, savers lose purchasing power, which pressures CASA and deposit mobilisation. Watching the CPI trend against the 4% target is therefore the quickest read on where bank lending and deposit rates are heading.

Key terms in this dataPlain-English definitions of the terms behind this dashboard — see the full Indian banking glossary. Repo rate · EBLR · MCLR · CASA

More live dataExplore BankPulse’s other live RBI dashboards: Repo Rate Timeline · CRR · SLR · Money Supply · Credit & Deposit Growth.

CPI inflation FAQ

What is India's CPI inflation rate?

India's headline retail inflation, measured by the All-India Consumer Price Index (CPI Combined, base 2012=100), averaged about 4.6% in 2024-25, down from 5.4% in 2023-24, and sits inside the RBI's tolerance band. For the exact latest monthly print, see the MOSPI/RBI source linked below.

What is the RBI's inflation target?

Under India's flexible inflation-targeting framework, the Government in consultation with the RBI has set the CPI inflation target at 4%, with a tolerance band of plus or minus 2 percentage points (2% to 6%). The Monetary Policy Committee sets the repo rate to keep inflation around this 4% target over the medium term.

Which index measures inflation in India?

The RBI's monetary policy targets the All-India CPI-Combined, compiled by the National Statistical Office (MOSPI) with base 2012=100. The Wholesale Price Index (WPI) and CPI for Industrial Workers are separate measures; the headline figure for the RBI's target is CPI-Combined.

How does inflation affect the repo rate?

When CPI inflation runs above the 4% target or threatens the 6% upper band, the RBI's MPC tends to raise the repo rate to cool demand; when inflation is comfortably within the band, the MPC has room to hold or cut to support growth. The CPI print is the single most important input into RBI rate decisions.

Methodology & sources: see how BankPulse dashboards are sourced, verified & updated · machine-readable CPI inflation JSON feed.

Last reviewed 20 Jun 2026 by Vikram Jain

Source: MOSPI Consumer Price Index releases & RBI Handbook of Statistics on the Indian Economy 2024-25, rbi.org.in. We never reproduce RBI text verbatim. Reviewed by Vikram Jain. Last updated 20 Jun 2026, 17:02 IST.

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