NSO Report Recently Shows India's Retail Inflation Falls to 2.10 Percent in June 2025 Lowest Since January 2019.
Economy Business
In July 2025, the National Statistics Office (NSO), functioning under the Ministry of Statistics and Programme Implementation (MoSPI), released the Consumer Price Index (CPI) data for rural, urban, and combined regions for the month of June 2025. According to the report, India’s retail inflation declined sharply to 2.10%, the lowest level recorded since January 2019.
- The retail inflation measured by CPI dropped to a 75-month low (6 years) in June 2025, compared to 2.82% in May 2025. This marks the fifth consecutive month where inflation has remained below the Reserve Bank of India’s (RBI) medium-term target of 4%, signifying price stability amid global economic uncertainties.
- The Consumer Price Index (CPI) captures the price movement of goods and services consumed by households. The latest report reflects a steady disinflationary trend since January 2025 and highlights a significant easing of retail price pressures on Indian consumers.
- The Wholesale Price Index (WPI), a separate inflation measure, entered deflation territory after 19 months. It recorded a decline to -0.13% in June 2025, compared to a 0.39% positive rate in May 2025, indicating a broad-based softening in wholesale prices.
Main Point :- (i) NSO’s data also revealed that the Year-on-Year (Y-o-Y) inflation rate for the All-India Consumer Food Price Index (CFPI) fell by -1.06% in June 2025 over June 2024 (Provisional), suggesting a clear easing in food price inflation, which plays a major role in overall CPI.
(ii) The rural headline inflation rate decreased significantly from 2.59% in May 2025 to 1.72% in June 2025 (Provisional), indicating better price control in rural India, particularly in essential goods and services.
(iii) Similarly, the urban CPI inflation dropped from 3.12% in May 2025 to 2.56% in June 2025 (Provisional). This drop in urban inflation further supports the trend of balanced price movement across all demographic regions.
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