India's retail inflation, as measured by Consumer Price Index (CPI), has hit a six-year-low of 2.1% in June, a sharp decline from May's rate of 2.82%.
Notably, inflation has also stayed below the Reserve Bank of India (RBI)'s medium-term target of 4% for fifth straight month, and under upper limit of 6% for eighth consecutive month.
The drastic drop is mainly due to positive base effects and lower inflation rates in major food categories and products like meat and fish.

• The All India Consumer Food Price Index (CFPI) recorded a year-on-year (YoY) inflation rate of -1.06% in June 2025
• In rural India, the CPI inflation rate for June 2025 was 1.72%, down from May's rate of 2.59%.
• Urban India also witnessed a decline, with the CPI inflation rate dropping to 2.56% in June from May's 3.12%.
• The combined transport and communication inflation rate for rural and urban areas stood at 3.9% in June 2025, slightly higher than May's rate of 3.85%.
• The education sector also saw an increase with a combined rural-urban inflation rate of 4.37%, up from May's figure of 4.12%.
• The fuel and light inflation rate across rural and urban areas eased to 2.55% in June 2025, down from 2.84% in May.
• Meanwhile, consolidated health inflation rose slightly to 4.43%, up from 4.34%.