India’s CPI rose 0.21% MoM and 2.82% YoY (vs 3% YoY expected) in May, the lowest YoY inflation since February 2019 and down from 3.16% YoY in April.

• CFPI (food inflation) fell -0.05% MoM and slowed sharply to 0.99% YoY, the lowest since October 2021.
• Rural CPI was 2.59% YoY (down from 2.92%) and urban CPI was 3.07% YoY (down from 3.36%).
• Major contributors to disinflation included declines in pulses, vegetables, fruits, cereals, and household goods.
• Core components saw mild increases: housing inflation at 3.16% YoY, education at 4.12% YoY, and health at 4.34% YoY.
• Highest state-level inflation rates were in Kerala (6.46%), Punjab (5.21%), and Jammu & Kashmir (4.55%).