Retail inflation falls to 6-year low

The significant decline in headline inflation and food inflation during the month of May 2025 is mainly attributed to a decline in inflation of pulses & household products

- PRESS TRUST OF INDIA

Retail inflation dipped to an over six-year low of 2.82 per cent in May due to subdued food prices, remaining below the Reserve Bank of India (RBI) median target of 4 per cent for the fourth consecutive month, according to government data released Thursday.

Consumer Price Index (CPI)-based retail inflation was 3.16 per cent in April and 4.8 per cent in May 2024, The previous low was in February 2019 at 2.57 per cent.

On easing inflation, the Apex bank effected a jumbo rate cut of 50 basis points last week, taking the total to 100 bps since February. Food inflation was 0.99 per cent in May, significantly lower from 8.69 per cent in the year-ago month, according to the National Statistics Office (NSO) data.