CPI inflation plummets! Retail inflation hits over 6-year low of 2.10% in June 2025; food inflation contracts 1.06%
Inflation in May 2025 stood at 2.82%.
CPI inflation hits over 6-year low! Retail inflation or Consumer Price Index (CPI) inflation for the month of June 2025 has hit an over 6-year low of 2.10%, according to data from the government. This marks the lowest year-on-year inflation since January 2019. Inflation in May 2025 stood at 2.82%.
June 2025 CPI Inflation: Key highlights
- The
All India Consumer Food Price Index (CFPI) indicates a year-on-year inflation rate of -1.06% (Provisional) for June 2025 versus June 2024. - Rural and urban areas recorded rates of -0.92% and -1.22%, respectively.
Food inflation experienced a substantial decrease of 205 basis points in June 2025 compared to May 2025, reaching its lowest level since January 2019.- The considerable reduction in both headline and food inflation during June 2025 primarily results from positive base effects and reduced inflation across various food categories, including Vegetables, Pulses and Products, Meat and Fish, Cereals and products, Sugar and confectionery, Milk and products and Spices.
- In rural areas, June 2025 witnessed notable decreases in both headline and food inflation. The headline inflation stood at 1.72% (Provisional), down from 2.59% in May 2025. The rural CFPI-based food inflation registered -0.92% (Provisional) in June 2025, compared to 0.95% in May 2025.
- The urban sector experienced a substantial decline in headline inflation from 3.12% in May 2025 to 2.56% (Provisional) in June 2025. Similarly, urban food inflation showed a marked decrease from 1.01% in May 2025 to -1.22% (Provisional) in June 2025.
