Inflation Lowest in 8 Years!
India’s Retail Inflation Eases Sharply to 1.55% in July 2025, Lowest Since 2017
India’s retail inflation, measured by the Consumer Price Index (CPI), dropped sharply to 1.55% year-on-year in July 2025, marking the lowest level since June 2017. The Ministry of Statistics and Programme Implementation released the data on Tuesday, showing a 55 basis point decline from June’s 2.10%. This easing reflects falling prices in key sectors and a favorable base effect. Food inflation dipped further into negative territory at -1.76%, the lowest since January 2019, driven by price declines in pulses, vegetables, cereals, eggs, sugar, and transport services. Both rural and urban areas recorded a significant drop in inflation, offering relief amid ongoing global economic uncertainties.
Food inflation based on the Consumer Food Price Index (CFPI) dropped further, with pulses, vegetables, cereals, and confectionery prices all easing. Rural food inflation fell to -1.74%, down from -0.87% in June, while urban food inflation slipped to -1.90% from -1.17%. The transport and communication sector saw a sharp drop in inflation, sliding from 3.90% in June to 2.12% in July. Meanwhile, fuel and light inflation inched up slightly to 2.67%, compared to 2.55% last month. These contrasting movements reflect softer demand in some areas but persistent cost pressures in others.
Housing inflation remained steady at 3.17%, almost unchanged from June’s 3.18%. Education inflation eased to 4.00%, down from 4.37%, showing moderation in schooling-related costs. Health inflation rose slightly to 4.57% from 4.38%, indicating some upward pressure in medical expenses. Overall, most sectors demonstrated easing inflation, helping to moderate the headline numbers. This varied sectoral performance suggests a cautiously optimistic outlook for inflation in the near term, balancing falling food prices against rising health and fuel costs.
(With Inputs From ANI)
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