August 13, 2025
NEW DELHI – India’s retail inflation slipped to an eight-year low of 1.55 per cent in July, mainly due to subdued prices of food items, including vegetables and cereals. The consumer price index (CPI) based inflation was 2.1 per cent in June and 3.6 per cent in July 2024.
According to the data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Tuesday, there is a decline of 55 basis points in the headline inflation of July 2025 in comparison to June 2025. It is the lowest year-on-year inflation rate since June 2017.
The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) for July 2025 over the same month in 2024 is -1.76 per cent (Provisional). Corresponding inflation rates for rural and urban are -1.74 per cent and -1.90 per cent, respectively, the data said.
The food inflation in July 2025 is also the lowest after January 2019. A decline of 75 basis points is observed in food inflation in July 2025 in comparison to the previous month.
“The significant decline in headline inflation and food inflation during July 2025 is mainly attributed to favourable base effect and the decline in inflation of pulses and products, transport and communication, vegetables, cereal and products, education, egg and sugar, and confectionery,” the National Statistics Office (NSO) said.
Notably, at the policy meeting, the Reserve Bank of India has cut its full-year inflation forecast to 3.1 per cent from 3.7 per cent earlier.
The RBI expects inflation to average 2.1 per cent in the second quarter, 3.1 per cent in the third, and end the fiscal at 4.4 per cent.