India's headline inflation eases to cooler-than-expected 2.82% in May as food prices slide
- India's consumer inflation rate dropped to 2.82% in May 2025, according to official government data released in New Delhi.
- The easing reflects a decline from April's 3.16% and came below a Reuters median estimate of 3%, marking the lowest inflation since February 2019.
- The drop was fueled by food inflation decreasing sharply to 0.99%, alongside vegetable inflation dipping 13.7% in April and subdued cereal price growth of 4.77% in May.
- The Reserve Bank of India lowered its key repo rate by half a percentage point to 5.50%, marking the lowest level reached since August 2022, in response to easing inflationary pressures.
- The rate reduction highlights a policy shift toward easing to bolster growth, as India's economy grew at an annualized pace of 7.4% during the quarter concluding in March and is projected to expand by 6.5% in fiscal year 2025.
12 Articles
12 Articles
Consumer Price Index: Retail inflation eases to 2.82% in May, lowest since February 2019
The Consumer Price Index (CPI) based retail inflation dipped to an over six-year low of 2.82 per cent in May, 2025. There is decline of 34 basis points in headline inflation of May, 2025 in comparison to April, 2025 when it was 3.16 per cent. The dip is mainly due to subdued prices of food items, including vegetables, fruits, and protein-rich items, showed government data released on Thursday. Food inflation was at 0.99 per cent in May, signifi…
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