Retail inflation falls to 77-month low
Retail inflation in June 2025 has come down to 2.10%. This is the lowest level in 77 months. Earlier it was 2.05% in January 2019. Whereas in May 2025 it was 2.82% and in April 2025 retail inflation was at 3.16%.
Retail inflation has come down due to continuous softening in the prices of food items. Retail inflation figures have been released today i.e. on 14th July. Retail inflation has been below RBI’s target of 4% since February.
Price of food items decreased in June
Food items contribute about 50% to the inflation basket. Its month-on-month inflation has come down from 0.99% to minus 1.06%.
In June, the rural inflation rate has come down from 2.59% to 1.72%. At the same time, urban inflation has come down from 3.12% to 2.56%.
RBI reduced inflation forecast
Earlier, in the RBI Monetary Policy Committee meeting held from 4 to 6 June, the inflation forecast for the financial year 2025-26 was also reduced from 4% to 3.7%. RBI reduced its inflation forecast for the April-June quarter from 3.6% to 2.9%.
