MUMBAI: India's retail inflation rate in May recorded the lowest year-on-year growth in over six years , as the Consumer Price Index (CPI) rose by just 2.82% year-on-year during the month. This mark a 34 basis point decline from April 2025 and the lowest reading since February 2019. The provisional figures, released by the National Statistics Office, highlight a significant easing of price pressures across the country.
Apart from the basis point decline, food inflation also plunged to a multi-year low of 0.99% in May 2025, by 79 basis points from the previous month. This is the lowest food inflation recorded since October 2021. Both rural and urban areas saw similar declines, with rural food inflation at 0.95% and urban at 0.96%.
The drop in headline and food inflation is attributed mainly to falling prices of pulses, vegetables, fruits, cereals, household goods, sugar, and eggs, as well as a favorable base effect.
Rural headline inflation stood at 2.59% in May 2025, down from 2.92% in April, while urban headline inflation declined to 3.07% from 3.36%. Housing inflation in urban areas was 3.16%, and education and health inflation rates were 4.12% and 4.34%, respectively.
Year-on-year Housing inflation rate for the month of May, 2025 is 3.16% (Provisional). Corresponding inflation rate for the month of April, 2025 was 3.06%. The housing index is compiled for urban sector only.
Education inflation rate for May, 2025 is 4.12% compared to 4.13% in April.
Health inflation rate in May was at 4.34% compared to 4.25% in April. Transport & communication inflation was 3.85% compared to 3.67% in the previous month. Fuel & light inflation rate fell from 2.92% in April to 2.78% in May.