India's retail inflation dropped to a six-year low of 2.10% in June, down from 2.82% in May and 5.08% in June 2024. This marks the fifth consecutive month inflation has stayed below the Reserve Bank of India's 4% medium-term target.

The decline was driven by easing food prices and favorable base effects. Food inflation turned negative at -1.06% in June compared to 0.99% in May, with vegetable prices falling 19% and pulse prices declining 11.76%. Tomato and potato prices dropped 31.52% and 25.37% respectively.

The data comes after the RBI's Monetary Policy Committee cut the benchmark repo rate by 50 basis points to 5.5% last month, the third consecutive cut this year.