Inflation will be curbed, from food to drinks, these things can become cheaper, this report of the Finance Ministry has raised hopes

Finance Minister Nirmala Sitharaman introduced the Finance Bill 2025 in the Lok Sabha, the lower house of Parliament, on Monday and said that food inflation is coming down, due to the reduction in the prices of vegetables in the winter season and the continuous reduction in the prices of pulses. 

At the same time, the ministry said that the inflation of grains is continuously declining, which will reach 6.1 percent in February 2025.

Investment affected globally

The ministry also raised concerns about trade risks facing India and other countries due to tariff-related developments and indicated that the trade outlook for 2025 remains uncertain. 

Tariff-related developments in several countries have increased trade-related risks, affecting investment and trade flows globally. India's exports have registered slow growth so far in FY25.

Reducing the problem of inflation

Finance Minister Nirmala Sitharaman said that the inflation rate of pulses has gone into negative territory for the first time in 32 months. The prices of tomatoes, onions and potatoes (TOP) have come down, according to retail price data from the Department of Consumer Affairs, indicating the average price for tomatoes to be Rs 21.3 per kg, Rs 35.9 per kg for onions and Rs 24.1 per kg for potatoes in March 2025. While the inflation rate has come down in vegetables, cereals and pulses, the inflation rate has increased in edible oils.

Kharif and Rabi food grain production

In cereals, kharif rice production is estimated to increase by 6.6 per cent, while wheat production is expected to reach a record 1154.3 lakh tonnes, showing a growth of 1.9 per cent. 

In pulses, tur and chana production is expected to increase by 2.8 per cent and 4.5 per cent, while kharif oilseeds are estimated to increase by 14.4 per cent. 

Food inflation and hence pressure on core inflation are easing, but the trend in edible oil prices may pose risks in the near term. Retail inflation declined to 3.6 per cent in February 2025 due to the recent softening in food prices.