Overview

• June’s consumer price index eased to 2.10%, the lowest reading since January 2019, marking the eighth consecutive month of slowing inflation.
• Food price inflation entered deflation at –1.06% as broad-based declines in vegetables, pulses and staples weighed on the consumer basket.
• The wholesale price index slipped into negative territory at –0.13% in June, its first annual decline in 19 months, driven by lower food and fuel costs.
• Favourable year-ago comparisons and robust monsoon-linked harvests underpinned the sharp disinflation and widened the Reserve Bank of India’s scope for additional rate cuts.
• Policymakers remain vigilant on core inflation trends, monsoon distribution and evolving global tariff risks that could alter the near-term price outlook.