Overview

• Consumer price index inflation slowed to 2.1% in June, its weakest reading since January 2019
• Wholesale price index inflation moved into deflation at –0.13%, the first negative print in 19 months
• Food inflation registered a 1.06% year-on-year decline as prices of vegetables, pulses and dairy products fell sharply
• Manufactured product inflation eased to 1.97% and the fuel and power segment dropped 2.52% month-on-month
• The RBI’s Monetary Policy Committee has cut policy rates by 100 basis points in 2025 and trimmed its FY26 inflation forecast to 4.0%