Question
What was the magnitude of the decline in food inflation
in June 2025 compared to the same month in the previous year?Solution
In June 2025, food inflation fell sharply by 205 basis points compared to June 2024. This significant year-on-year drop was driven by a substantial correction in the prices of essential items such as vegetables, pulses, cereals, milk, sugar, meat, and spices, contributing heavily to the overall softening of retail inflation.
Consider the following statements about inflation:
1. Inflation occurs when prices are generally increased across the economy.
2. An incre...
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