Retail inflation based on Consumer Price Index (CPI) dipped to 2.82 per cent in May as against 3.16 per cent in April, government reported on Thursday. May’s headline number is the lowest year-on-year inflation since February 2019.
Here are highlights:
- Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of May, 2025 over May, 2024 is 0.99 per cent. Corresponding inflation rate for rural and urban are 0.95 per cent and 0.96 per cent respectively. A sharp decline of 79 basis point is observed in food inflation in May, 2025 in comparison to April, 2025. The food inflation in May, 2025 is the lowest after October, 2021.
- The significant decline in headline inflation and food inflation during the month of May, 2025, is mainly attributed to decline in inflation of pulses & products, vegetables, fruits, cereals & products, households goods & services, sugar & confectionary and egg and the favourable base effect.
- Rural Inflation: Significant decline in headline and food inflation in rural sector observed in May. The headline inflation is 2.59 per cent in May while the same was 2.92 per cen in April. Food inflation in rural sector is observed as 0.95 in May in comparison to 1.85 per cent in April.
- Urban Inflation: Significant decline from 3.36 per cent in April to 3.07 per cent in May, 2025 is observed in headline inflation of urban sector. Sharp decline is also observed in food inflation from 1.64 per cent in April to 0.96 per cent in May
- Housing Inflation: Housing inflation rate for the month of May is 3.16 per cent as against 3.06 per cent in April. The housing index is compiled for urban sector only.
- Education Inflation: Education inflation rate for the month of May is 4.12 per cent as against 4.13 per cent of April. It is combined education inflation for both rural and urban sector...