June CPI Inflation Hits 6-Yr Low of 2.1%; Food Prices Drop, Healthcare, Education Gets Costlier

June CPI Inflation Data: India's retail inflation dropped to a six-year-low mark of 2.1% in June due to reducing food prices and favourable base effect, according to the data released by the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, July 14.

The consumer price index (CPI) inflation for the month of June declined by 72 basis points (bps) in headline inflation for June 2025 against the inflation rate in May 2025. The record decline in retail inflation was led by a significant decline in food inflation, which was also at its lowest mark in June 2025, after 2019.

What Led To Decline In Inflation In India?

A widespread decline in inflation in vegetables, pulses, and products, meat and fish, cereals and products, sugar and confectionary, milk and products and spices led to the decline in food inflation. Consequently, there was a significant decline in headline inflation.

Early onset of monsoon also aided in boosting agricultural output that led to a surge in its supply in the market. Increased supply helped in curbing food inflation, according to experts. "Base effect aided by impact of early monsoon result in lower than estimated headline CPI for June. Overall inflation is cooperating. Small uptick in inflation seen in coming months," noted Jyoti Prakash, Managing Partner - Equity & PMS at Alphaa Money

In addition to food inflation, there was a drop in rural as well as urban inflation. However, construction and sale of the real estate became costlier with housing inflation surging to 3.24% on a year-on-year basis in June, 2025.

"A sharp decline in cereals inflation cereals and steeper deflation in vegetables and pulses dragged food inflation down to -1.1% in June from 1.0% in May. In July, so far, vegetable prices have seen a mild on-month uptick, though the on-year decline is steep," noted Dipti Deshpande, Principal Economist, Crisil Limited.

Rising Cost Of Education, Healthcare, And Transport

Declining food inflation coincided with a surge in the cost of healthcare related services and items. Additionally, inflation in education, transport and fuel also increased on a year-on-year basis in June, according to MoSPI data.

As per PIB press release, Education inflation rate increased to 4.37% in June on a year-on-year basis. Whereas, the education inflation rate stood at 4.12% in May, 2025. Healthcare inflation rate increased to 4.43% year-on-year basis, whereas it stood at 4.34% in May, 2025. Year-on-year Fuel & light inflation rate for the month of June, 2025 is 2.55% (Provisional). Corresponding inflation rate for the month of May, 2025 was 2.84%. It is combined inflation rate for both rural and urban sector.

Kerala, Punjab, Haryana, Among Top States With Highest Inflation Surge

Kerala, Punjab, Haryana, Jammu and Kashmir, and Uttarakhand were among the top Indian states which witnessed maximum increase in inflation in June. Inflation in Kerala increased by 6.71% in June month on an annual basis. Whereas, inflation in Punjab, Haryana, Jammu and Kashmir, and Uttarakhand increased by 4.67%, 3.10%, 4.38%, and 3.40% respectively.

Top Item With Biggest Price Hikes: It Is Not Oil, Gold Or Fuel, But...

As per the MOSPI data, gold June inflation rate stood at 35%, whereas silver became expensive by 17% on a year-on-year basis in June. Apple prices surged by 21% on an annual basis in June. Mustard oil became expensive by 18.28% in previous month against the corresponding period. Coconut products and associated items witnessed maximum surge in price on an annual basis in June. Coconut (copra) June inflation rate stood at 41%, whereas coconut oil's June inflation rate stood at whopping 97.22%.