June 2025 CPI Inflation: A Record Low

Retail inflation, as measured by the Consumer Price Index (CPI), plummeted to an over 6-year low of 2.10% in June 2025, marking the lowest year-on-year inflation since January 2019. This significant drop from May 2025's 2.82% highlights a notable shift in the economic landscape.

Key Highlights of June 2025 CPI Inflation

The All India Consumer Food Price Index (CFPI) reported a year-on-year inflation rate of -1.06% for June 2025, with rural and urban areas recording rates of -0.92% and -1.22%, respectively. This decline is attributed to positive base effects and reduced inflation across various food categories.

Urban housing inflation saw a slight increase to 3.24%, while the combined rural and urban transport and communication inflation rate edged up to 3.90%. Education and health inflation rates also experienced upticks, signaling varied sectoral impacts.