Article Title: Retail inflation eases to 6 year low
14-06-2025
Economy Current Affairs Analysis
Context
• India’s retail inflation eased to a 75-month low of 2.8% in May 2025, driven downwards by falling food inflation, according to data released on Thursday.
• Overall, retail inflation has averaged 2.99% in 2025-26 — based on the two months of data available — the lowest average for the first two months of a financial year since 2017-18.
• “Deflation in key components such as vegetables, pulses, spices, and meat contributed to this decline,” said Rajani Sinha, Chief Economist at CareEdge Ratings. “However, double-digit inflation in edible oils and fruits partially offset the broader moderation.”
Terms
• Inflation: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
• Headline inflation: It reflects changes in the prices of a representative basket of goods and services that households buy, as measured by the consumer price index (CPI). The CPI includes prices for thousands of items, including Food, Fuel, Housing, and beverages, etc.
• Core inflation: It excludes food and fuel items from headline inflation, which are relatively more volatile
WPI Vs CPI
"UPSC-2026-PRELIMS COMBINED MAINS PROGRAMME" NEW BATCH STARTS WITH ORIENTATION ON JULY 7th,2025 
