Retail Inflation Plummets to Six-Year Low

Retail inflation in June fell to a six-year low of 2.1%, driven by lower prices of food items such as vegetables, pulses, meat, and milk. The decline is attributed to a favourable base effect, with the Consumer Price Index-based inflation previously at 2.82% in May and 5.08% in June 2024.

Retail inflation has hit a significant milestone, reaching a six-year low of 2.1% in June, primarily due to a drop in food prices. This development is outlined in a statement from the National Statistics Office (NSO) released recently.

In comparison, the Consumer Price Index (CPI) based inflation rate was previously logged at 2.82% for May and stood notably higher at 5.08% in June 2024. This marks a 72 basis points reduction from May 2025, making it the lowest year-on-year inflation since January 2019.

Experts attribute this decline to a favourable base effect and significant reductions in the prices of various food items, including vegetables, pulses, cereals, and more. This trend offers a fresh perspective on consumer spending and the economic outlook.

(With inputs from agencies.)