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Retail inflation eases to six-year low of 2.82% in May
Jun-12-2025

India's retail inflation, as measured by the Consumer Price Index (CPI), eased to a six-year low of 2.82 per cent in the month of May 2025 mainly due to a slower increase in food prices. It is the lowest reading since February 2019. CPI inflation had stood at 3.16 per cent in April 2025 and 4.80 per cent in May 2024. This is the fourth consecutive month when the CPI-based inflation remains comfortably within the Reserve Bank of India’s (RBI) medium-term target of 4 per cent and well inside the 2-6 per cent tolerance band. Food inflation, which makes up nearly half of the Consumer Price Index (CPI) basket, eased to 0.99 per cent in May from 1.78 per cent in April. It is also lower than 8.69 per cent in May 2024.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in May 2025 stood at 2.59 per cent over 2.92 per cent in April 2025. The Urban CPI (General) stood at 3.07 per cent in May as against 3.36 per cent in April. The index value for Rural, Urban and Combined CPI (General) stood at 194.3, 191.4 and 193.0 respectively, in May 2025. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of May 2025, NSO collected prices from 100 per cent villages and 98.6 per cent urban markets while the market-wise prices reported therein were 88.9 per cent for rural and 92.7 per cent for urban.

Besides, Food and beverage inflation eased to 1.50 per cent in May from 2.14 per cent in April, as vegetable prices further declined to (-) 13.70 per cent in May from (-) 10.98 per cent in the prior month. Inflation in meat and fish came at (-) 0.39 per cent over (-) 0.35 per cent in preceding month. Inflation for cereals came down to 4.77 per cent in May from 5.35 per cent in April. Inflation in pulses and products remained in deflationary territory at (-) 8.22 in May compared to (-) 5.23 per cent last month. The inflation rate for milk and milk products was 3.15 per cent in May slightly higher compared to 2.72 per cent in April.  Clothing and footwear inflation remained to flat at 2.67 per cent in May over previous month, while Housing inflation inched up to 3.16 per cent from 3.00 per cent in the prior month. Fuel and light inflation came down to 2.78 per cent in May over 2.92 per cent in April.
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