Question
What percentage did retail inflation drop to in May
2025, reaching its lowest point in 75 months?Solution
Retail inflation in India fell to 2.8% in May 2025, marking a 75-month low—the lowest since February 2019. This significant decline was primarily attributed to falling food prices. Retail inflation, measured by the Consumer Price Index (CPI), influences monetary policy, especially interest rate decisions by the RBI. This low inflation reading suggests a comfortable inflation environment, although it may also reflect weak demand.
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