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CPI inflation plummets! Retail inflation hits over 6-year low of 2.10% in June 2025; food inflation contracts 1.06%

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Inflation in May 2025 stood at 2.82%.

CPI inflation hits over 6-year low! Retail inflation or Consumer Price Index (CPI) inflation for the month of June 2025 has hit an over 6-year low of 2.10%, according to data from the government. This marks the lowest year-on-year inflation since January 2019. Inflation in May 2025 stood at 2.82%.

CPI Inflation

June 2025 CPI Inflation: Key highlights

The All India Consumer Food Price Index (CFPI) indicates a year-on-year inflation rate of -1.06% (Provisional) for June 2025 versus June 2024.
Rural and urban areas recorded rates of -0.92% and -1.22%, respectively.
Food inflation experienced a substantial decrease of 205 basis points in June 2025 compared to May 2025, reaching its lowest level since January 2019.
The considerable reduction in both headline and food inflation during June 2025 primarily results from positive base effects and reduced inflation across various food categories, including Vegetables, Pulses and Products, Meat and Fish, Cereals and products, Sugar and confectionery, Milk and products and Spices.
In rural areas, June 2025 witnessed notable decreases in both headline and food inflation. The headline inflation stood at 1.72% (Provisional), down from 2.59% in May 2025. The rural CFPI-based food inflation registered -0.92% (Provisional) in June 2025, compared to 0.95% in May 2025.
The urban sector experienced a substantial decline in headline inflation from 3.12% in May 2025 to 2.56% (Provisional) in June 2025. Similarly, urban food inflation showed a marked decrease from 1.01% in May 2025 to -1.22% (Provisional) in June 2025.
The urban sector housing inflation rate reached 3.24% (Provisional) year-on-year in June 2025. This shows an increase from the May 2025 rate of 3.16%. The housing index calculations are exclusively for urban areas.
The combined rural and urban transport and communication inflation rate recorded 3.90% (Provisional) year-on-year in June 2025, slightly higher than May 2025’s rate of 3.85%.
The combined rural and urban education inflation rate stood at 4.37% (Provisional) year-on-year in June 2025, rising from 4.12% in May 2025. This rate encompasses both rural and urban sectors.
The overall fuel and light inflation rate decreased to 2.55% (Provisional) year-on-year in June 2025, down from 2.84% in May 2025. This calculation includes both rural and urban sectors.
The consolidated health inflation rate for June 2025 registered at 4.43% (Provisional) year-on-year, showing an uptick from 4.34% in May 2025. This figure represents both rural and urban sectors.

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