US EditionIndia's Retail Inflation Hits 8-Year Low At 1.55% In July 2025
INDIA, AUG 12 – India's retail inflation fell to 1.55% in July, the lowest since 2017, driven by food price declines and broad easing across consumption categories, RBI data shows.
- In July 2025, India's retail inflation dropped significantly to 1.55%, reaching its lowest point in over eight years, as revealed by government data released on August 12.
- This decline followed a 55 basis-point drop from June's 2.10%, driven mainly by falling food prices and favorable base effects, as reported by the National Statistics Office.
- Additional easing occurred broadly across sectors, with rural inflation at 1.18%, urban inflation down to 2.05%, and food inflation recording a deflation of 1.76% in July.
- Reserve Bank of India Governor Sanjay Malhotra highlighted that the inflation forecast for the fiscal year 2025-26 has improved compared to projections made in June, with the RBI estimating overall CPI inflation at 3.1% for the year.
- The sharp disinflation strengthens arguments for monetary easing by the RBI, although expectations of higher future inflation could influence the timing and extent of any rate changes.
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Total News Sources18
Leaning Left4Leaning Right5Center4Last UpdatedBias Distribution38% Right
Bias Distribution
- 38% of the sources lean Right
38% Right
L 31%
C 31%
R 38%
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