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Jun 16, 2025
India witnesses 14-Month low in wholesale inflation
Wholesale inflation in India dropped to just 0.39% in May—the lowest it's been in 14 months and down from 0.85% in April. This marks three straight months of falling wholesale prices, while consumer inflation has also cooled off to a nearly six-year low.
TL;DR
RBI cuts repo rate to 5.5%
Food inflation slowed too, dipping from 2.55% to 1.72%. With prices easing, the Reserve Bank of India responded by lowering its repo rate to 5.5% for 2025 after several earlier cuts.
Falling inflation boosts economic confidence
Falling inflation is good news for anyone keeping an eye on their wallet—lower prices can mean more room to spend or save. It's also a positive signal for businesses and policymakers looking at India's economic future, as steady price drops could help boost growth and confidence all around.