SF Prep Notes

Retail inflation falls to 2.82% in May 2025, lowest since February 2019; food inflation 0.99%

On 12 June 2025 in New Delhi, MoSPI released CPI data showing all-India retail inflation of 2.82% in May 2025, the lowest year-on-year rate since February 2019.

Summary

Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI) on 12 June 2025 showed all-India year-on-year inflation of 2.82% in May 2025, 34 basis points below April 2025 and the lowest since February 2019. All-India food inflation, measured by the Consumer Food Price Index (CFPI), was 0.99%, 79 basis points below April and the lowest since October 2021. Rural inflation was 2.59% and urban inflation 3.07%. CPI numbers are compiled on base 2012=100 for rural, urban and combined (static).

Key facts

Headline CPI (May 2025)
2.82%; lowest since February 2019; down 34 bp from April
CFPI (food)
0.99%; lowest since October 2021; down 79 bp
Rural / Urban
2.59% / 3.07%
Base (static)
CPI base year 2012=100, released by MoSPI

Practice MCQs 4 questions

Q1

What was India's all-India year-on-year CPI (retail) inflation for May 2025, released on 12 June 2025?

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Correct answer: A — 2.82%

PIB (MoSPI): all-India year-on-year inflation based on CPI for May 2025 was 2.82%, the lowest since February 2019.

Q2 Advanced

Consider the following statements about the CPI data for May 2025 released on 12 June 2025: 1. All-India food inflation based on the Consumer Food Price Index (CFPI) was 0.99%. 2. This food inflation was the lowest since October 2021. Which of the statements given above is/are correct?

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Correct answer: C — Both 1 and 2

PIB (MoSPI): CFPI-based all-India food inflation for May 2025 was 0.99%, the lowest year-on-year food inflation since October 2021. So both 1 and 2 are correct.

Q3 Advanced

Which of the following correctly gives rural and urban CPI inflation for May 2025?

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Correct answer: B — Rural 2.59%, Urban 3.07%

PIB (MoSPI): for May 2025, rural inflation was 2.59% and urban inflation 3.07%, so the answer is Rural 2.59%, Urban 3.07%.

Q4 Advanced

The Consumer Price Index numbers (Rural, Urban and Combined) released by MoSPI for May 2025 are compiled on which base year?

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Correct answer: D — 2012=100

PIB (MoSPI) (static): the release is titled 'Consumer Price Index Numbers on Base 2012=100 for Rural, Urban and Combined', so the base is 2012=100.

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