Retail inflation in India, also known as CPI (Consumer Price Index) inflation, dropped to 2.10% in June 2025, the lowest level since January 2019. This is a big drop from 2.82% in May 2025, as per government data.
Key Points from June 2025 CPI Data:
- Food inflation (measured by the Consumer Food Price Index) fell by -1.06% compared to June 2024.
- In rural areas, food inflation was -0.92%, and in urban areas, it dropped even more to -1.22%.
- This means food prices actually became cheaper in many places during June 2025.
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Why the Drop in Inflation?
The sharp fall in inflation is mainly because:
- There was already a high base in June 2024.
- Prices of many food items went down—such as vegetables, pulses, cereals, sugar, milk, spices, and meat.
Rural vs Urban Inflation:
- In rural India, overall inflation was 1.72% in June 2025 (down from 2.59% in May).
- In urban areas, inflation dropped to 2.56% in June 2025 from 3.12% in May.
Housing & Other Sectors:
- Urban housing inflation rose slightly to 3.24% from 3.16% in May.
- Transport and communication inflation (rural + urban) stood at 3.90%, a slight increase from 3.85%.
- Education inflation went up to 4.37%, from 4.12% in May.
- Fuel and light inflation dropped to 2.55% from 2.84%.
- Health inflation rose a bit to 4.43%, up from 4.34% in May.
Inflation has come down sharply in June 2025, especially because of falling food prices. This is good news for common people, as it means things are getting a bit more affordable. However, inflation in areas like health, education, and housing is still on the rise and needs to be watched.
