India’s Retail Inflation Cools to 2.82% in May 2025, Lowest in Over 6 Years

India’s Retail Inflation Cools to 2.82% in May 2025, Lowest in Over 6 Years

India’s Consumer Price Index (CPI) inflation dropped sharply to 2.82% in May 2025, marking the lowest level since February 2019, according to the National Statistical Office (NSO) data released on Wednesday. The drop from 3.16% in April was primarily fueled by a broad-based decline in food prices and a favourable base effect.

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📉 Food Inflation Plunges to Near Zero

The Consumer Food Price Index (CFPI), which tracks retail food inflation, fell to 0.99% in May, down from 1.78% in April and 8.69% in May 2024. This is the lowest food inflation reading since October 2021.

The NSO attributed the easing to falling prices across essential food categories:

• Pulses

• Vegetables

• Fruits

• Cereals

• Eggs

• Sugar

• Household goods and services

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🏡 Rural vs Urban Inflation Trends

Rural CPI inflation declined to 2.59% in May from 2.92% in April, while rural food inflation dropped to 0.95% from 1.85%. Urban CPI inflation eased to 3.07%, down from 3.36%, with urban food inflation falling to 0.96% from 1.64%. Sectoral inflation overview📊 Sector-wise Inflation Breakdown

Despite the overall cooling, certain categories showed mixed trends:

• 🏠 Housing (Urban Only): 3.16% (↑ from 3.06%)

• 📚 Education: 4.12% (↓ from 4.13%)

• 🏥 Health: 4.34% (↑ from 4.25%)

• 🚗 Transport & Communication: 3.85% (↑ from 3.67%)

• 🔥 Fuel & Light: 2.78% (↓ from 2.92%)