Inflation Tumbles to 6 Year Low! CPI Falls to 2.82% – What It Means for Your Pocket
India’s CPI, hits 2.82% in May 2025 ,lowest in 6 years. Cheaper food prices ,offer relief .RBI cuts FY26 forecast to 3.7%. Inflation under control across urban and rural India.
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Big Economic Relief: CPI Hits 6-Year Low at 2.82%
There’s a rare moment of cheer for every Indian household retail inflation has crashed to just 2.82% in May 2025, a level not seen since February 2019. Down from 3.16% in April, and beating market expectations of 2.95%, this is more than just a statistic it’s a real breather for millions battling rising costs over the past few years. The figure now sits well below the RBI’s 4% comfort zone, marking the fourth consecutive month of steady relief.
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Vegetables, Pulses & Essentials Turn Affordable
So, what’s fueling this pleasant surprise? It’s the food on your plate.
Vegetables: Their prices dropped further, with inflation at a stunning -13.70% (down from -10.98%).
Pulses: A daily staple in Indian kitchens, also saw inflation fall deeper into the negative from -5.23% to -8.22%.
Overall, food inflation dipped from 1.78% to just 0.99%, putting more rupees back in your wallet at the kirana store and sabzi mandi.
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RBI’s Confidence Grows – Forecast Revised to 3.7%
The Reserve Bank of India seems equally upbeat. In its June 6 policy review, the RBI slashed its inflation forecast for FY26 from 4% to 3.7%. That sends a strong signal that the central bank is seeing signs of long-term price stability. No immediate rate hikes seem likely another green flag for the economy.
Relief Across Rural and Urban India
This isn’t just a metro miracle. Both urban and rural inflation dropped significantly:
Urban inflation: Down from 3.36% to 3.07%
Rural inflation: Slipped from 2.92% to 2.59%
For once, both Bharat and India are feeling the same sense of relief.
Not Everything Is Cheaper Yet
It’s not all good news, though. Core inflation, which excludes food and fuel, nudged slightly up from 4.1% to 4.2%, showing that underlying pressures remain in certain sectors. Housing costs too rose marginally from 3% to 3.16%.
The Bottom Line-A Welcome Break, But Stay Watchful
With inflation easing sharply and food prices falling Indian households can finally breathe easier. But with core and housing inflation slightly inching up it is not time to relax completely. This is a positive turning point ,a win for the common man and a good sign for the economy.