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Retail inflation in July slips to 8-year low of 1.55%

Retail inflation in India fell to 1.55% in July 2025, driven by a 1.76% drop in food prices and vegetable costs down 20.69% year-on-year, the lowest since 2017.

  • Data from MoSPI revealed CPI inflation fell to 1.55% in July 2025, the lowest since June 2017.
  • Amid favourable base effects, the NSO said food inflation fell to-1.76% in July 2025 due to declines in pulses, vegetables and cereals.
  • Urban inflation eased from 2.56% in June, while rural inflation fell to-1.74% from 1.72% in June.
  • This decline gives the Reserve Bank of India’s Monetary Policy Committee more room to consider rate cuts, as the CPI forecast was revised to 3.1% below 3.7%.
  • With base effects receding, headline inflation may average 2.1% in the September quarter, according to Shukla, and could rise to 4.9 in April–June 2026.
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FXStreet broke the news in on Tuesday, August 12, 2025.
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