India’s CPI Inflation Falls to 6-Year Low of 2.82% in May 2025, Food Prices Key Driver
New Delhi : India’s Consumer Price Index (CPI) inflation eased to 2.82% in May 2025—its lowest year-on-year level since February 2019, as per provisional data released by the Ministry of Statistics & Programme Implementation. The reading reflects a 34-basis-point decline from April 2025’s 3.16%, indicating strong economic stability and subdued price pressures.
A major contributor to the fall was food inflation, which dropped sharply to 0.99% in May, the lowest since October 2021. This marks a 79-basis-point drop from April’s 1.78%, driven by reduced prices of pulses, vegetables, fruits, cereals, sugar, eggs, and other essentials. The decline was further aided by a favorable base effect from the previous year.
Urban vs Rural Trends
Rural headline inflation fell to 2.59% (from 2.92% in April).
Urban headline inflation eased to 3.07% (from 3.36%).
Rural food inflation declined to 0.95%, down from 1.85%.
Urban food inflation stood at 0.96%, compared to 1.64% in April.
Sectoral Highlights
Housing inflation (urban only): Slight uptick to 3.16% from 3.06%.
Education inflation: Held steady at 4.12%.
Health inflation: Slight increase to 4.34%.
Transport and communication: Rose to 3.85% from 3.67%.
Fuel and light: Eased to 2.78%, compared to 2.92% last month.
State-wise Inflation
While most states reported moderate inflation, some witnessed higher price rises:
Kerala: 6.46%
Punjab: 5.21%
Jammu & Kashmir: 4.55%
Data Collection & Index Movement
The National Statistical Office (NSO) collected data from 1114 urban markets and 1181 villages, achieving a 100% response rate in rural areas and 98.6% in urban zones.
All-India CPI (Base year 2012): Rose marginally from 192.6 in April to 193.0 in May—a monthly increase of 0.21%.
Consumer Food Price Index (CFPI): Slightly declined by 0.05%, standing at 194.5.
Outlook
The continued moderation in retail inflation reflects effective monetary and fiscal coordination, coupled with supply-side stability. With food prices remaining in check and fuel costs easing, inflationary concerns appear contained, offering relief to households and scope for policy flexibility going forward.
