Retail inflation in June 2025: Softness in the prices of other foods including vegetables, lentils, meat, fish, grains, sugar, spices and milk has come down to the 6 -year low of 2.1 percent in June 2025. The Consumer Price Index based inflation (CPI) was 2.82 percent in May and 5.08 percent in June 2024. This is the fifth consecutive month when inflation has been below the 4% target of the medium term of the Reserve Bank of India (RBI) and is a consecutive month when it has been under the upper tolerance band of 6% of the central bank.
Retail inflation decreased by 0.72 percent in June compared to May 2025
This has been revealed in the report released by the government on Monday. Crores of common people of the country are feeling very relieved due to falling retail inflation. The National Statistics Office (NSO) said in a statement, “Inflation declined by 72 basis points (0.72 percent) in June 2025 as compared to May 2025. This is the lowest inflation since January 2019.” With this, June was the second consecutive month when inflation was below 3%. Earlier in January 2019 it was recorded at 1.97 percent. In May this year, retail inflation was at 2.82%, while in June 2024 it was at 5.08%.
RBI has cut repo rate 3 times in a row this year
These figures of retail inflation have come down by the RBI to 50 basis points (0.50 percent) to 5.5%. Let us tell you that the RBI has cut the repo rate for the third consecutive time this year. The RBI has reduced its CPI inflation forecast for FY 2026 to reduce the estimate of 4% in April to 3.70%. According to the RBI, the inflation rate is estimated to be 2.9% in the first quarter of the current financial year, 3.4% in the second quarter, 3.5% in the third quarter and 4.4% in the fourth quarter.
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