New Delhi, July 14, 2025 — India’s retail inflation, measured by the Consumer Price Index (CPI), dropped sharply to 2.10% year-on-year (YoY) in June 2025, down from 2.82% in May, according to data released by the National Statistics Office (NSO). This marks the lowest inflation rate since January 2019, largely driven by a steep decline in food prices.
Food Inflation Turns Negative
The Consumer Food Price Index (CFPI), which tracks food price changes, fell into deflation at –1.06% YoY in June (from +0.99% in May). This significant fall was led by sharp price drops in:
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Vegetables: –19.0% overall
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Pulses & products: –11.8%
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Meat & fish: –1.6%
Rural vs Urban Inflation
Both rural and urban areas saw a decline:
| CPI YoY | Food CPI YoY | |
|---|---|---|
| Rural | 1.72% | –0.92% |
| Urban | 2.56% | –1.22% |
Inflation fell more steeply in rural India, but urban areas also recorded food deflation for the first time in years.
Inflation in Other Key Sectors
While food prices dropped, some essential services continued to see moderate inflation:
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Housing: 3.24% (up from 3.16% in May)
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Education: 4.37%
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Health: 4.43%
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Transport & Communication: 3.90%
State-wise Inflation Highlights
Some states reported higher inflation:
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Kerala: 6.71%
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Punjab: 4.67%
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Jammu & Kashmir: 4.38%
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Uttarakhand: 3.40%
States like Andhra Pradesh and Telangana saw mild deflation in certain categories.
Monthly Trend
On a month-over-month basis (June vs. May):
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CPI rose by 0.62% overall
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Food prices increased slightly by 1.08%
Despite the year-on-year decline, these monthly gains suggest there could be some food price pressure in coming months.