Current Affairs - Economy - Discussion

In May 2025, India recorded a Consumer Price Index (CPI) inflation rate of 2.82%, marking the lowest point since February 2019. This significant drop reflects a broader trend of easing inflation across most Indian states, although some like Kerala, Punjab, and Jammu & Kashmir continued to see elevated price levels. The decline in inflation could be attributed to various macroeconomic factors including stable commodity prices, improved supply chain conditions, and effective monetary policies. Such a low inflation rate is significant for the economy as it suggests increasing price stability, which can influence interest rates, purchasing power, and overall economic planning.