Retail inflation declined to 2.82% in May

Current Context: India's retail inflation declined to 2.82% in May 2025, marking its lowest level since February 2019. The National Statistical Office (NSO) released the data on June 12, 2025.

• This drop was primarily driven by falling food prices, with food inflation dropping to 0.99%, its lowest since October 2021.

Key Highlights

• Overall CPI Inflation: 2.82% in May, down from 3.16% in April.
• Food Inflation: 0.99%, significantly lower than 8.69% in May 2024.
• Rural vs Urban Trends: Rural inflation fell to 2.59%, while urban inflation eased to 3.07%.
• State-wise Inflation: Kerala recorded the highest inflation at 6.46%, while Telangana had the lowest at 0.55%.
• RBI’s Inflation Projection: The Reserve Bank of India revised its CPI inflation forecast for 2025-26 to 3.7%, with quarterly estimates ranging from 2.9% to 4.4%.

Question:

Q.1 What was the food inflation rate in May 2025?
a) 2.4%
b) 3.1%
c) 0.99%
d) 8.69%

Answer: c) Food inflation was recorded at 0.99% in May 2025, significantly lower than the 8.69% recorded in May 2024.