India’s Consumer Price Index (CPI)-based inflation eased to 2.82% in May 2025, down 34 basis points from April’s 3.16%, marking the lowest reading since February 2019. The fall was sharper than expected, with the CNBC-TV18 poll pegging May inflation at 2.95%.A key driver of the decline was food inflation, which dropped to 0.99%—the lowest since October 2021—significantly below both April’s 1.78% and the poll estimate of 1.8%.
Rural inflation eased to 2.59% in May from 2.92% in April, while urban inflation softened to 3.07% from 3.36%. Rural and urban food inflation stood at 0.95% and 0.96%, respectively.
Among major categories, vegetable prices plunged 13.70% year-on-year, pulses fell 8.22%, and cereals also saw easing pressures. Fuel and light inflation moderated to 2.78%, while housing inflation inched up to 3.16%.Education, health, and transport inflation rates remained elevated at 4.12%, 4.34%, and 3.85% respectively, but had little effect on the overall moderation in headline inflation.The sharp disinflation is partly attributed to a favourable base effect and lower prices in essential food items. The data was released by the Ministry of Statistics and Programme Implementation (MoSPI) at 4 PM.
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