India’s CPI Inflation Falls to 2.10% in June 2025, Lowest Since January 2019
By Shishta Dutta | Published at: Jul 14, 2025 05:04 PM IST
New Delhi, July 14, 2025 – India’s retail inflation cooled sharply to 2.10% in June 2025, marking the lowest annual rate in over six years. The decline brings relief to households and policymakers, highlighting a broad easing in consumer prices across urban and rural areas.
The drop was mainly driven by a steep fall in food inflation, especially in vegetables and pulses, combined with a favourable base effect from the previous year. The Consumer Food Price Index (CFPI) fell into deflation territory at -1.06%, significantly pulling down the overall CPI reading.
Key CPI and CFPI Highlights: June 2025
| Indicator | June 2025 (YoY) | May 2025 (YoY) | June 2024 (YoY) |
|---|---|---|---|
| CPI (General) | 2.10% | 2.82% | 5.08% |
| CFPI (Food Price Index) | -1.06% | 0.99% | 9.36% |
- Rural Inflation: Declined to 1.72% from 2.59% in May.
- Urban Inflation: Eased to 2.56% from 3.12% in May.
- Food Inflation (CFPI): Plunged to -1.06% YoY from 0.99% in May – the sharpest drop in over six years.
Category-wise Trends (YoY):
| Category | Inflation Rate (June 2025) |
|---|---|
| Housing | 3.24% |
| Education | 4.37% |
| Health | 4.43% |
| Transport & Communication | 3.90% |
| Fuel & Light | 2.55% |
Food and Beverage Deflation: The food and beverages group recorded a mild deflation of -0.20% at the national level, with items like vegetables (-19.00%), pulses (-11.76%), and spices (-3.03%) showing deep negative inflation.
Top States by CPI Inflation (June 2025)
According to the chart on page 2, Kerala led with the highest YoY inflation at 6.71%, followed by Punjab (4.67%) and Tamil Nadu (2.22%).
Key Items with Major Price Movements
| Item | YoY Inflation (%) |
|---|---|
| Coconut Oil | 97.22% |
| Gold | 35.98% |
| Coconut (Copra) | 41.01% |
| Tomato | -31.52% |
| Onion | -26.62% |
| Arhar Dal (Tur) | -25.11% |
| Potato | -25.37% |
Monthly CPI Movement
On a month-over-month basis, the general index rose by 0.62%, with rural and urban inflation increasing by 0.62% and 0.57% respectively.
Outlook
The steep fall in food inflation and overall CPI supports the narrative of easing price pressures, which may influence RBI’s upcoming monetary policy stance. The continued drop in essential commodity prices offers relief to consumers, especially in rural regions.
About the CPI
India’s CPI is compiled using data from 1,114 urban markets and 1,181 villages across all states and UTs. The June 2025 data had a 100% response rate from rural areas and 98.5% from urban areas.
The next CPI release for July 2025 is scheduled for August 12, 2025. For historical trends, CPI inflation stood at 5.08% in June 2024 and 2.10% in June 2025, a drop of 298 basis points year-on-year.
REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2144511
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