India's Retail Inflation Hits 6-Year Low at 2.82% in May 2025

India's retail inflation dropped to 2.82% in May 2025, marking the lowest level in six years. Previously, in March 2019, retail inflation was recorded at 2.86%. The consistent decline in food prices has contributed to this fall in consumer inflation.

In April 2025, retail inflation had declined to 3.16%, while in March it stood at 3.34%, which was a 67-month low at the time. The latest consumer price index (CPI) data was released on June 12.

Retail inflation has remained below the Reserve Bank of India’s (RBI) target of 4% since February.

Food Prices Declined in April

Food items make up nearly 50% of the inflation basket. The month-on-month food inflation fell from 1.78% to 0.99% in April.

Rural inflation declined from 2.92% to 2.59%, while urban inflation dropped from 3.36% to 3.07% during the same period.