Summary: India's retail inflation fell to a six-year low of 2.82% in May 2025, down from 3.16% in April and 4.8% the previous year, owing to a substantial decline in food costs. This is the fourth consecutive month of sub-4% inflation. Food inflation fell to 0.99%, with falls in meat, fish, vegetables, and pulses. Following a 50-basis-point repo rate decrease, the RBI may suspend further easing, with experts seeing FY26 inflation below 4%.

Source: IBEF

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