India’s headline retail inflation fell to 2.82% in May 2025, the lowest year-on-year rate since February 2019, according to data released by the National Statistical Office (NSO) on Wednesday. The Consumer Price Index (CPI) reading was down 34 basis points from 3.16% in April, driven primarily by a sharp moderation in food prices and a favourable base effect.Food inflation, measured by the Consumer Food Price Index (CFPI), dropped to 0.99% in May, its lowest since October 2021. This represents a steep fall from 1.78% in April and 8.69% in May 2024. The NSO attributed this easing to declining prices across key food categories including pulses, vegetables, fruits, cereals, eggs, sugar, and household goods and services.Rural and urban inflation trends
- Rural
CPI inflation declined to 2.59% in May from 2.92% in April, while rural food inflation dropped to 0.95% from 1.85%. - Urban CPI inflation eased to 3.07%, down from 3.36%, with urban food inflation falling to 0.96% from 1.64%.
Sectoral inflation overview
- Housing inflation (urban only): 3.16% (vs 3.06% in April)
- Education inflation (combined): 4.12% (vs 4.13%)
- Health inflation (combined): 4.34% (vs 4.25%)
- Transport & Communication (combined): 3.85% (vs 3.67%)
- Fuel & Light (combined): 2.78% (vs 2.92%)
