Consumer Price Index Trends June 2025

Summary of Consumer Price Index (CPI) Numbers for June 2025

The Consumer Price Index (CPI) report for June 2025 highlights several key indicators reflecting the state of inflation across rural and urban sectors in India, with particular focus on consumer food prices.

Key Highlights:

• Headline Inflation:

  • The year-on-year inflation rate based on the All India CPI is reported at 2.10% for June 2025, representing a decline of 72 basis points from May 2025.
  • This is the lowest year-on-year inflation recorded since January 2019.

• Food Inflation:

  • The Consumer Food Price Index (CFPI) indicates a food inflation rate of -1.06% for June 2025, a significant decline of 205 basis points from May 2025, marking the lowest food inflation since January 2019.
  • The respective food inflation rates for rural and urban areas are -0.92% and -1.22% respectively.
  • The decrease in food inflation is attributed to favorable baseline effects and reduced prices in essential commodities including vegetables, pulses, meat, fish, cereals, milk, and sugar.

• Sector-wise Inflation:

  • Rural Sector:

    • Headline inflation stands at 1.72%, down from 2.59% in May 2025.
    • CFPI for the rural sector shows food inflation of -0.92%, improving from 0.95% in May 2025.

  • Urban Sector:

    • Urban headline inflation has decreased from 3.12% in May 2025 to 2.56% in June 2025.
    • Corresponding CFPI shows food inflation falling to -1.22% from 1.01% in the previous month.

• Housing, Education, Health, Transport & Communication, Fuel & Light:

  • Housing Inflation: 3.24% (compared to 3.16% in May 2025).
  • Education Inflation: 4.37% (up from 4.12% in May 2025).
  • Health Inflation: 4.43% (an increase from 4.34%).
  • Transport and Communication Inflation: 3.90% (up from 3.85%).
  • Fuel & Light Inflation: 2.55% (down from 2.84%).

State-wise Comparisons:

• The report highlights inflation rates across various states, indicating variability in inflation pressures. States such as Kerala and Haryana show notable changes:
  • Kerala: Rural CPI increased from 201.2 to 215.9 (7.31%); Urban CPI went from 196.9 to 208.1 (5.69%).
  • Haryana: Rural CPI from 192.2 to 198.2 (3.12%); Urban CPI from 181.6 to 187.2 (3.08%).

Economic Indicators:

• The rural inflation reflects the economic conditions affecting agricultural households, while urban inflation illustrates the costs borne by city dwellers.
• The data is sourced from 1114 urban markets and 1181 villages across India, ensuring a comprehensive representation.

Future Projections:

• The next CPI data release is scheduled for August 12, 2025, giving insight into inflation for July 2025.

Important Points:

• Headline Inflation: 2.10% in June 2025 (lowest since Jan 2019).
• Food Inflation: -1.06% (lowest since Jan 2019).
• Rural Headline Inflation: 1.72% (down from 2.59% in May).
• Urban Headline Inflation: 2.56% (down from 3.12% in May).
• Significant declines observed in key food categories, particularly vegetables and protein sources.
• The CPI data includes comprehensive state-wise inflation rates, with Kerala showing the highest change.
• Prepared by the National Statistical Office, Ministry of Statistics and Programme Implementation (MoSPI).

This summary provides a detailed overview of India’s economic situation as evaluated through the CPI metrics, offering essential insights for policymakers and stakeholders involved in economic planning and analysis.