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India's Retail Inflation Rebounds in August but Stays Within RBI’s Target Band
India's inflation rose due to higher prices in vegetables, meat, oils, and personal care, while government tax cuts aim to boost consumption and offset U.S. tariffs, economists said.
- India's retail inflation rose to 2.07% year-on-year in August 2025 while food inflation remained negative at-0.69% for the third consecutive month, reflecting moderation in prices.
- The inflation increase followed July’s 1.61% headline inflation and-1.76% food deflation, driven by higher costs for vegetables, meat, fish, oils, and eggs amid concerns over kharif crop yields due to excess rains.
- The GST Council approved major rate revisions on September 3, lowering rates on many goods, exempting essentials, and implementing 40% duties on sin and luxury items, effective from September 22 coinciding with Navaratri.
- A PwC survey found 63% of consumers worry about rising food prices, with nearly half altering shopping habits, while economists expect GST cuts to stimulate consumption, boost GDP by 1.2%, and ease inflationary pressure from October.
- The Reserve Bank of India kept its repo rate steady at 5.5% with a neutral stance in August, projecting inflation around 3.1% for FY26, and signaling possible policy easing if growth slows amid trade uncertainties.
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Total News Sources18
Leaning Left0Leaning Right4Center2Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
C 33%
R 67%
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