Retail Inflation Falls to Over Six-Year Low of 2.82% in May 2025

Food Prices Drive Steep Fall in CPI Inflation, Says NSO

New Delhi, June 12, 2025 – Retail Inflation eased to its lowest level in over six years at 2.82% in May 2025, according to data released by the National Statistics Office (NSO) on Thursday. The decline is largely attributed to a sharp drop in food prices, including vegetables, fruits, and other protein-rich items.

Compared to the Consumer Price Index, Inflation was 3.16% in April 2025 and 4.8% in May 2024, reflecting a consistent downward trend.

Food Inflation Plummets to 0.99%

Food inflation registered a marked decline to 0.99% in May 2025 from 8.69% in May last year, the lowest rate since October 2021. This provides some solace for households dealing with the high grocery cost burden in recent times.

According to the NSO statement, “The significant decline in headline inflation and food inflation during May 2025 is mainly attributed to a drop in inflation of pulses & products, vegetables, fruits, cereals & products, household goods & services, sugar & confectionery, and eggs, along with a favorable base effect.”

Sector-Wise Trends Highlight Broad-Based Cooling

The data suggest significant broad-based disinflation across key categories, usually affecting household budgets. Not only have perishable items, such as vegetables and fruits, had price moderation, but staple items have declined: pulses and cereals have fallen in price.

The recent drop in inflation may allow monetary authorities to exercise discretionary policy and buoy consumer sentiment during the festive season.

The data highlight a macroeconomic positive: the government is continuing efforts to stabilize the prices of essential commodities in an environment of relatively healthy inflation.

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