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CPI cools down to 2.10% in June on subdued prices of food items
Jul-14-2025

Continuing its easing trend for the eighth straight month, India's retail inflation, as measured by the Consumer Price Index (CPI), came down to 2.10 per cent in June 2025 from 2.82 per cent in May 2025 mainly due to subdued prices of food items. The CPI-based inflation was 5.08 per cent in June 2024. Inflation for the month of June is the lowest year-on-year inflation after January, 2019. The previous low of 1.97 per cent was recorded in January 2019. This is the fifth consecutive month when the CPI-based inflation remains comfortably within the Reserve Bank of India’s (RBI) medium-term target of 4 per cent and well inside the 2-6 per cent tolerance band. Food inflation, which makes up nearly half of the CPI basket, came in at (-) 1.06 per cent in June, compared with 0.99 per cent in May.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in June 2025 stood at 1.72 per cent over 2.59 per cent in May 2025. The Urban CPI (General) stood at 2.56 per cent in June as against 3.12 per cent in May. The index value for Rural, Urban and Combined CPI (General) stood at 195.5, 192.6 and 194.2 respectively, in June 2025. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of June 2025, NSO collected prices from 100 per cent villages and 98.5 per cent urban markets while the market-wise prices reported therein were 88.5 per cent for rural and 92.2 per cent for urban.

Besides, inflation in Food and beverage eased further to (-) 0.20 per cent in June 2025 on account of further decline in vegetable prices as its inflation stood at (-) 19.00 per cent in June from (-) 13.70 per cent in May. Inflation in pulses and products remained in deflationary territory at (-) 11.76 in June compared to (-) 8.22 per cent last month. Inflation in meat and fish came at (-) 1.62 per cent over (-) 0.39 per cent in preceding month. Inflation for cereals came down to 3.73 per cent in June from 4.77 per cent in May. The inflation rate for milk and milk products came down to 2.80 per cent in June from 3.15 per cent in May.  Further, Clothing and footwear inflation for the month of June inched down to 2.55 per cent from 2.67 per cent in May, while Housing inflation slightly down at 3.24 per cent in the reporting month from 3.16 per cent in the prior month. Also, Fuel and light inflation came down to 2.55 in June from 2.78 per cent in May.

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