NSO Report: India’s Retail Inflation declines to 2.10% in June 2025

Current Context: According to the Consumer Price Index (CPI) report for June 2025, released by the National Statistical Office (NSO) on 14 July 2025, India’s retail inflation dropped to 2.10%, marking its lowest level since January 2019.

• This sharp decline is primarily attributed to falling food prices, especially in categories like vegetables, pulses, cereals, meat, fish, milk, and spices, supported by a favourable monsoon and base effect.
• Food inflation turned negative at –1.06%, registering a steep 205 basis point drop from May 2025.
• Rural inflation eased to 1.72%, while urban inflation stood at 2.56%, both reflecting improved price stability.
• However, core inflation rose to 4.4%, driven by increased prices of gold, silver, and ornaments.
• Among states, Kerala recorded the highest inflation at 6.71%, whereas Telangana experienced deflation at –0.93%.

Question:

Q.1 What was India’s retail inflation rate in June 2025, as per the National Statistical Office (NSO)’s Consumer Price Index (CPI) report?
a) 1.72%
b) 2.10%
c) 2.56%
d) 4.4%

Answer: b) The report states that retail inflation dropped to 2.10%, the lowest since January 2019.