Inflation in India: A Painful Story

• The average Indian’s inflation rate fell to a 77-month low of 2.1% in June 2025, causing relief for policymakers but also causing pain for the public.

• Food inflation saw a significant easing, with food and beverage prices contracting 0.2% in June 2025. Key items like vegetables, pulses, spices, and meat saw prices fall.

• Other common consumption items and services saw inflation quickening in June, including education and stationery, health-care, and personal care.

• Food is cheaper, but nearly everything else is more expensive.

• The food basket carries a 46% weight in the overall Consumer Price Index (CPI), impacting the headline inflation data.

• The Ministry of Statistics and Programme Implementation is updating the CPI to be more representative, but this update is slow and dependent on outdated measures.

• The felt experience of the average Indian is still a painful one.