CPI inflation eases to 2.82% in May, logs 6-year low; food prices lead broad-based decline
India's headline retail inflation fell to 2.82% in May 2025, the lowest year-on-year rate since February 2019, according to data released by the National Statistical Office (NSO) on Wednesday.
The Consumer Price Index (CPI) reading was down 34 basis points from 3.16% in April, driven primarily by a sharp moderation in food prices and a favourable base effect.
Food inflation, measured by the Consumer Food Price Index (CFPI), dropped to 0.99% in May, its lowest since October 2021. This represents a steep fall from 1.78% in April and 8.69% in May 2024. The NSO attributed this easing to declining prices across key food categories including pulses, vegetables, fruits, cereals, eggs, sugar, and household goods and services.
Rural and 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
Housing inflation (urban only): 3.16% (vs 3.06% in April)
Education inflation (combined): 4.12% (vs 4.13%)
Health inflation (combined): 4.34% (vs 4.25%)
Transport & Communication (combined): 3.85% (vs 3.67%)
Fuel & Light (combined): 2.78% (vs 2.92%)
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