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India’s consumer price inflation eased to 2.82% in May 2025, down from 3.16% in April and below market expectations of 3%. This marked the lowest reading since February 2019, bringing inflation close to the Reserve Bank of India’s lower tolerance threshold of 2% under its inflation-targeting framework. Food inflation—which accounts for nearly half of the CPI basket—fell sharply to 0.99%, the lowest level since October 2021, driven by easing price pressures in pulses and products, vegetables, fruits, cereals, sugar and confectionery, and eggs. Meanwhile, fuel and light inflation also moderated (2.78% vs. 2.92% in April). In contrast, inflation remained steady or edged higher in categories such as housing (3.16% vs. 3.06%), education (4.12% vs. 4.13%), health (4.34% vs. 4.25%), and transport and communication (3.85% vs. 3.67%).