2025.06.1210:44:05UTC+00India’s Inflation Falls to 6-Year Low

India's consumer price inflation decreased to 2.82% in May 2025 from 3.16% in April, falling below market predictions of 3%. This represents the lowest level since February 2019, bringing inflation near the Reserve Bank of India's lower tolerance threshold of 2%, according to its inflation-targeting framework. Food inflation—which comprises almost half of the Consumer Price Index (CPI) basket—dropped significantly to 0.99%, the lowest point since October 2021. This decrease was largely driven by reduced price pressures in pulses and products, vegetables, fruits, cereals, sugar and confectionery, and eggs. Additionally, fuel and light inflation showed a decline (2.78% as opposed to 2.92% recorded in April). Conversely, inflation remained steady or experienced a slight increase in categories such as housing (3.16% up from 3.06%), education (4.12% compared to 4.13%), health (4.34% from 4.25%), and transport and communication (3.85% compared to 3.67%).