India’s Retail Inflation Falls to 8-Year Low at 1.55% in July

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India’s retail inflation fell to an eight-year low of 1.55% in July 2025, down from 2.1% in June, as per the Ministry of Statistics and Programme Implementation (MoSPI). This is the lowest year-on-year rate since June 2017.

• Rural Inflation: 1.18%
• Urban Inflation: 2.05%
• Food Inflation (All India CFPI):–1.76% (deflation), lowest since Jan 2019
  • Rural: –1.74%
  • Urban: –1.9%

Key Drivers of Decline:

• Favorable base effect
• Fall in inflation of pulses & products, vegetables, cereals, eggs, sugar & confectionery, transport & communication, and education

Updated: August 12, 2025 ; 7:49 PM | Source: MoSPI