Consumer Price inflation falls to lowest since Feb-19

Ministry of Statistics stated in a latest update that year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of May, 2025 over May, 2024 is 2.82% (Provisional). There is decline of 34 basis points in headline inflation of May, 2025 in comparison to April, 2025. It is the lowest year-on-year inflation after February, 2019. Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of May, 2025 over May, 2024 is 0.99% (Provisional). Corresponding inflation rate for rural and urban are 0.95% and 0.96%, respectively. All India inflation rates for CPI(General) and CFPI over the last 13 months are shown below. A sharp decline of 79 basis point is observed in food inflation in May, 2025 in comparison to April, 2025. The food inflation in May, 2025 is the lowest after October, 2021.

The sharp drop in headline inflation and food inflation during the month of May, 2025 is mainly attributed to decline in inflation of Pulses & products, Vegetables, Fruits, Cereals & products, Households goods & services, Sugar & confectionary and Egg and the favourable base effect. 

Rural Inflation: Significant decline was noted in headline and food inflation in rural sector observed in May, 2025. The headline inflation is 2.59% (Provisional) in May, 2025 while the same was 2.92% in April, 2025. The CFPI based food inflation in rural sector is observed as 0.95% (Provisional) in May, 2025 in comparison to 1.85% in April, 2025.

Urban Inflation: Significant decline was noted from 3.36% in April, 2025 to 3.07% (Provisional) in May, 2025 is observed in headline inflation of urban sector. Sharp decline is also observed in food inflation from 1.64% in April, 2025 to 0.96% (Provisional) in May, 2025. 

Housing Inflation: Year-on-year Housing inflation rate for the month of May, 2025 is 3.16% (Provisional). Corresponding inflation rate for the month of April, 2025 was 3.06%. The housing index is compiled for urban sector only.

Education Inflation: Year-on-year Education inflation rate for the month of May, 2025 is 4.12% (Provisional). Corresponding inflation rate for the month of April, 2025 was 4.13%.

Health Inflation: Year-on-year Health inflation rate for the month of May, 2025 is 4.34% (Provisional). Corresponding inflation rate for the month of April, 2025 was 4.25%.

Transport & Communication: Year-on-year Transport & communication inflation rate for the month of May, 2025 is 3.85%(Provisional). Corresponding inflation rate for the month of April, 2025 was 3.67%. It is combined inflation rate for both rural and urban sector.

Fuel & light: Year-on-year Fuel & light inflation rate for the month of May, 2025 is 2.78%(Provisional). Corresponding inflation rate for the month of April, 2025 was 2.92%.

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