India’s CPI Retail Inflation May 2025 Live Updates:
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ndia’s Retail Inflation 2025, Retail Inflation outlook for May 2025 updates: Retail inflation for May is likely to be below 3 per cent. Official data are to be out on Thursday and if the print is below 3 per cent, it will be so for the first time since April 2019.
Headline retail inflation rate based on Consumer Price Index (CPI) was 3.16 per cent in April – at a 69-month low.
TOP prices
In the month under consideration, vegetable prices saw a sharp reduction on yearly basis, and a mixed trend on sequential basis. According to CRISIL’s Monthly Indicator of Food Plate Cost, tomato prices fell by 29 per cent, onion by 15 per cent and potato was 16 per cent down in May. However, on a sequential basis, potato and tomato prices rose 3 per cent and 10 per cent respectively, while onion prices dipped 10 per cent.
All eyes are now on monsoon, which arrived early, but has slowed down since May 29. The Indian Metrological Department (IMD) has forecast a revival from Thursday.
Rate cut in sight?
An important question is whether there should be another policy interest rate (better known as repo rate, or the rate at which RBI lends to commercial banks) cut. The signal from RBI Governor Sanjay Malhotra is that there could be a pause for some time.
The MPC has decided to change the stance from accommodative to neutral. From here onwards, the MPC will be carefully assessing the incoming data and the evolving outlook to chart out the future course of monetary policy in order to strike the right growth-inflation balance.
It may be noted that retail inflation was below 3 per cent for 6 consecutive months between November 2018 and April 2019. During that period, policy interest rate was lowered by 50 basis points to 6 per cent from 6.5 per cent. At present, the policy interest rate is at 5.5 per cent.
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- 07:02 | June 12, 2025
Retail Inflation Live Updates: World Bank cuts India’s growth forecast by 40 bps to 6.3%
The Wold Bank on Tuesday lowered India’s economic growth forecast by 40 basis points (bps) for the current fiscal (FY26). India would still retain the tag of the fastest-growing economy in the world, said the multilateral institution.
World Bank cuts India’s growth forecast by 40 bps to 6.3%
World Bank lowers India’s growth forecast for FY26, but still projects it as the fastest-growing economy at 6.3%.
Published on June 12, 2025
