Retail inflation, measured by the Consumer Price Index (CPI), eased to 2.10% year-on-year from 2.82% in May, touching the lowest levels since January 2019. A year ago in June, the retail inflation was 5.08%
Food inflation declined to –1.06%, compared to 0.99% in May. This was driven by falling prices in vegetables, pulses, cereals, meat, fish, sugar, dairy, and spices resulting in the lowest food-inflation reading since January 2019.
The steep decline is also attributed to a favourable base effect and easing prices across key food categories.
Rural headline inflation dropped from 2.59% in May to 1.72% in June, while rural food inflation dipped to –0.92%, reversing the 0.95% gain in May.
Urban headline inflation declined from 3.12% to 2.56%, with food inflation plummeting from 1.01% to –1.22%.
Housing inflation (urban only) rose modestly to 3.24% from 3.16%. Education and health inflation edged up to 4.37% and 4.43%, respectively.
Transport & communication inflation came in at 3.90%, while fuel & light eased to 2.55% .