India’s retail inflation, measured by the Consumer Price Index (CPI), eased significantly in June 2025 to 2.10% year-on-year, compared to 2.82% in May 2025 and 5.08% in June 2024, marking the lowest reading since January 2019, according to the Ministry of Statistics and Programme Implementation.
A major contributor to the decline was food inflation, which fell sharply to -1.06% in June from 0.99% in May. This is the lowest food inflation print since January 2019, as prices of vegetables, pulses, cereals, meat & fish, sugar, milk products, and spices softened.
Key highlights from the data:
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CPI inflation (All-India, YoY): 2.10% in June vs 2.82% in May and 5.08% in June 2024.
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Food inflation (CFPI, YoY): -1.06% in June vs 0.99% in May and 9.36% in June 2024.
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Rural inflation: 1.72% vs 2.59% in May.
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Urban inflation: 2.56% vs 3.12% in May.
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Housing inflation: 3.24% vs 3.16% in May.
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Education inflation: 4.37% vs 4.12% in May.
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Health inflation: 4.43% vs 4.34% in May.
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Transport & Communication: 3.90% vs 3.85% in May.
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Fuel & Light: 2.55% vs 2.84% in May.
The ministry attributed the easing inflation to both a favourable base effect and a fall in prices of several key food items. Vegetables and pulses witnessed particularly sharp declines, with vegetable prices dropping nearly 19% year-on-year and pulses about 12%.
The data also showed a sequential rise in the headline index: CPI (General) rose 0.62% month-on-month in June, while food prices rose 1.08% over May.
Among states, Kerala recorded the highest combined inflation at 6.71%, while Telangana saw a decline of -0.93% in its combined inflation rate.
The June numbers offer significant comfort on the price front and reinforce the disinflationary trend seen over the last few months. The next release of CPI data (for July 2025) is scheduled for August 12, 2025.
For more details, the official release is available at PIB.
