Retail Inflation Hits 6-Year Low of 2.82% in May 2025:
India’s retail inflation cooled to a six-year low of 2.82% in May 2025, primarily driven by a sharp decline in food prices. According to data released by the National Statistical Office (NSO), food inflation dropped to 0.99% from 8.69% a year ago. This development marks the lowest retail inflation level since February 2019 and is seen as a positive signal for the Monetary Policy Committee (MPC) and broader economic stability.Retail inflation data released on June 12, 2025, revealed a significant decline in CPI-based inflation for May 2025, reaching a 75-month low. The steep drop in food inflation which forms a major portion of the CPI basket played a crucial role in this decline, prompting analysts to revisit future monetary policy expectations and economic outlooks.
