The official statement noted: “Headline inflation for June 2025 has dropped by 72 basis points compared to May.
New Delhi: Retail inflation in India, measured by the Consumer Price Index (CPI) dropped to just 2.10% in June 2025, marking the lowest level in the past six years, according to data released by the Ministry of Statistics and Programme Implementation on Monday. The decline was primarily driven by subdued food price increases and a favourable base effect, the government said.
In comparison, retail inflation stood at 2.82% in May — a decline of 72 basis points in just one month. In June last year, the inflation rate was significantly higher at 5.08%. For the fifth consecutive month, inflation has remained below the Reserve Bank of India’s medium-term target of 4%, and for eight straight months, it has stayed under the central bank’s upper tolerance limit of 6%.
The official statement noted: “Headline inflation for June 2025 has dropped by 72 basis points compared to May. This marks the lowest year-on-year inflation rate since January 2019.” Analysts attribute the sharp moderation in price rise to stable food prices and improved supply chains for essential goods.
Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said, “The softer-than-expected headline inflation is largely the result of subdued food inflation. Although core inflation has risen slightly, we are not seeing any broad-based uptick in high-frequency mandi prices, except for a few vegetables.”
She added, “This benign inflation print gives the RBI more room for monetary easing. However, we believe the central bank will likely keep interest rates unchanged over the next one or two meetings, while closely monitoring the policy transmission and ongoing global uncertainties.”
New Delhi: Retail inflation in India, measured by the Consumer Price Index (CPI) dropped to just 2.10% in June 2025, marking the lowest level in the past six years, according to data released by the Ministry of Statistics and Programme Implementation on Monday. The decline was primarily driven by subdued food price increases and a favourable base effect, the government said.
In comparison, retail inflation stood at 2.82% in May — a decline of 72 basis points in just one month. In June last year, the inflation rate was significantly higher at 5.08%. For the fifth consecutive month, inflation has remained below the Reserve Bank of India’s medium-term target of 4%, and for eight straight months, it has stayed under the central bank’s upper tolerance limit of 6%.
The official statement noted: “Headline inflation for June 2025 has dropped by 72 basis points compared to May. This marks the lowest year-on-year inflation rate since January 2019.” Analysts attribute the sharp moderation in price rise to stable food prices and improved supply chains for essential goods.
Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, said, “The softer-than-expected headline inflation is largely the result of subdued food inflation. Although core inflation has risen slightly, we are not seeing any broad-based uptick in high-frequency mandi prices, except for a few vegetables.”
She added, “This benign inflation print gives the RBI more room for monetary easing. However, we believe the central bank will likely keep interest rates unchanged over the next one or two meetings, while closely monitoring the policy transmission and ongoing global uncertainties.”
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