CPI inflation dips to 2.82% in May

13-Jun-2025 03:14 PM

New Delhi. Due to a slight decline in food prices, the retail inflation rate based on the Consumer Price Index (CPI) dropped from 3.16 percent in April to 2.82 percent in May 2025. This is the lowest inflation level since February 2018. According to data released by the Union Ministry of Statistics and Programme Implementation, the CPI inflation rate fell by 34 basis points in May compared to April. It is noteworthy that in October 2024, the inflation rate had surged to 6.21 percent, the highest in 14 months. The recent drop was greater than expected, as analysts had predicted a rate of around 2.95 percent for May.

The annual inflation rate based on the All India Consumer Food Price Index was recorded at 0.99 percent in May 2025, compared to the same month in 2024. It stood at 0.95 percent in rural areas and 0.96 percent in urban areas. During May, the food inflation rate declined sharply by 79 basis points compared to April, falling to its lowest point since October 2021.

Significant reductions were observed in the prices of pulses, vegetables, cereals and their products, household items and services, sugar, and confectionery. Food inflation in rural areas dropped from 2.92 percent in April to 2.59 percent in May, while in urban areas it remained steady at 0.96 percent. The price of pulses, which had declined by 5.23 percent in April, fell further by 8.22 percent in May. Inflation for cereals and related products was recorded at 4.77 percent, for milk and dairy products at 3.15 percent, and for fuel at 2.78 percent.

The continued fall in food inflation is providing room for the Reserve Bank of India to consider changes in its monetary policy, particularly in relation to the repo rate.