India’s Inflation Plunges to Lowest in Years: A Deep Dive into May’s CPI Data

India experienced a significant drop in inflation in May 2025, reaching a multi-year low of 2.82% according to the National Statistical Office (NSO). This marks the lowest inflation rate since February 2019, signaling a positive economic trend. The impressive decline is largely attributed to a considerable decrease in food prices, with the Consumer Food Price Index (CFPI) plummeting to a mere 0.99%.

This broad-based reduction in inflation wasn’t limited to a specific region. Both rural and urban areas witnessed a welcome moderation in their respective inflation rates during the month. This positive development offers a glimmer of hope for consumers struggling with rising costs in recent years.

The significant decrease in food prices is particularly noteworthy, indicating improved food supply and potentially easing pressure on household budgets. Further analysis of the NSO data will be crucial to understand the long-term implications of this trend and to assess its sustainability.