India’s Consumer Price Index (CPI) inflation rate dropped to 2.82% in May 2025, marking the lowest year-on-year rate since February 2019, according to the Ministry of Statistics & Programme Implementation. This provisional figure, measured against May 2024, reflects a 34-basis-point decline from April 2025’s 3.16%, signaling robust economic stability.
Food inflation, a key driver, fell sharply to 0.99% in May 2025, the lowest since October 2021, down 79 basis points from April’s 1.78%. Rural areas recorded a food inflation rate of 0.95%, while urban areas saw 0.96%. The decline is attributed to lower prices for pulses, vegetables, fruits, cereals, household goods, sugar, confectionery, and eggs, supported by a favorable base effect.
Headline inflation in rural areas decreased to 2.59% in May 2025 from 2.92% in April, while urban areas saw a reduction from 3.36% to 3.07%. Rural food inflation dropped from 1.85% to 0.95%, and urban food inflation fell from 1.64% to 0.96%. Other sectors showed varied trends: housing inflation, measured only in urban areas, rose slightly to 3.16% from 3.06%, while education and health inflation stood at 4.12% and 4.34%, respectively. Transport and communication inflation increased to 3.85% from 3.67%, and fuel and light inflation eased to 2.78% from 2.92%.
The National Statistical Office collected price data from 1114 urban markets and 1181 villages across all states and Union Territories, achieving a 100% response rate for villages and 98.6% for urban markets. States with the highest inflation rates include Kerala (6.46%), Punjab (5.21%), and Jammu & Kashmir (4.55%), though most states reported moderated rates.
Tracked on a 2012 base year since January 2013, the combined CPI for May 2025 reached 193.0, up marginally by 0.21% from April’s 192.6. The Consumer Food Price Index (CFPI) remained nearly stable at 194.5, with a minimal monthly change of -0.05%, reflecting effective economic management and affordability for millions of Indians.
