India’s annual retail inflation rate, based on the Consumer Price Index (CPI), fell to 2.82% in May 2025, down from 3.16% in April, marking the lowest inflation print since February 2019. The decline was driven by a steep fall in food inflation, which dipped to 0.99%, compared to 1.78% in the previous month.
This drop is largely attributed to easing prices in vegetables, cereals, pulses, sugar, fruits, and eggs, as well as a favorable base effect. The overall rural inflation stood at 2.59%, while urban inflation came in at 3.07%.
Key Category-wise Inflation Data (Year-on-Year, May 2025):
| Category | Inflation Rate (%) |
|---|---|
| CPI (General) | 2.82 |
| CFPI (Food) | 0.99 |
| Housing (Urban only) | 3.16 |
| Education | 4.12 |
| Health | 4.34 |
| Transport & Communication | 3.85 |
| Fuel & Light | 2.78 |
Notable Monthly Changes (May over April 2025):
-
General CPI (Combined): Up by 0.21%
-
CFPI (Combined): Down by 0.05%
-
Urban CPI: +0.26%, Rural CPI: +0.15%
State-wise Highlights:
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Kerala recorded the highest inflation among major states at 6.46%
-
Punjab and Jammu & Kashmir followed at 5.21% and 4.55%, respectively
-
Telangana recorded the lowest inflation at just 0.55%
Commodity Highlights:
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Apple: +19.33% YoY
-
Gold: +32.21% YoY
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Vegetables: -13.29% to -14.00% (YoY)
-
Tomato: -26.19% YoY
-
Onion: -10.71% YoY
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Arhar/Tur Dal: -19.54% YoY
