The food inflation in India fell to around six percent year-on-year in January 2025. In 2024, the food inflation peaked in October at about 11 percent.
Impact of inflation
Inflation is a key economic indicator of an economy, influencing purchasing power, investments, and economic growth. The rise in food prices, which comprise about half of the consumer price index (CPI) basket, affects large sections of the Indian population. Supply chain disruptions, increased cost of production, global market dependency, weather conditions, and government policies on minimum support prices are some reasons leading to food inflation.
TOP drivers of food inflation
Price-sensitive vegetables viz. tomato, onion, and potato (TOP) were the leading drivers of food inflation as per the Economic Survey for the financial year 2025. Experts argue that price pressures are not mainly due to a shortfall in production but post-harvest losses, seasonal production, and regional dispersion in production.
Food inflation rate in India from April 2021 to January 2025
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Trading Economics. (March 7, 2025). Food inflation rate in India from April 2021 to January 2025 [Graph]. In Statista. Retrieved June 04, 2025, from https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/
Trading Economics. "Food inflation rate in India from April 2021 to January 2025." Chart. March 7, 2025. Statista. Accessed June 04, 2025. https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/
Trading Economics. (2025). Food inflation rate in India from April 2021 to January 2025. Statista. Statista Inc.. Accessed: June 04, 2025. https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/
Trading Economics. "Food Inflation Rate in India from April 2021 to January 2025." Statista, Statista Inc., 7 Mar 2025, https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/
Trading Economics, Food inflation rate in India from April 2021 to January 2025 Statista, https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/ (last visited June 04, 2025)
Food inflation rate in India from April 2021 to January 2025 [Graph], Trading Economics, March 7, 2025. [Online]. Available: https://www.statista.com/statistics/1288790/india-monthly-food-inflation-rate/
