Retail inflation hits 8-year low of 1.55% in July as food prices drop
India's retail inflation, measured by the Consumer Price Index (CPI), dropped to an 8-year low of 1.55% in July, the lowest since June 2017. This figure is below the Reserve Bank of India's comfort band of 2% to 6%. The decline is primarily attributed to a significant drop in food prices, with the food and beverages category experiencing deflation at -0.8% in July. Core inflation, which excludes volatile food and fuel prices, also eased to 4.1% in July 2025 from 4.4% in the previous month, nearing RBI's target of 4%.
Key Points
- Retail inflation in India has fallen to its lowest level in eight years, driven by a decrease in food prices.
- The Consumer Price Index (CPI) is the primary measure for retail inflation, released by the Ministry of Statistics and Programme Implementation.
- The current inflation rate is below the RBI's comfort band, indicating a favorable economic trend.
- Core inflation also eased, suggesting broader price stability beyond volatile components.
Exam Facts
- Retail inflation in July was 1.55%, an 8-year low since June 2017.
- The Reserve Bank of India's comfort band for inflation is 2% to 6%.
- The Consumer Price Index (CPI) is released by the Ministry of Statistics and Programme Implementation.
- Core inflation eased to 4.1% in July 2025.
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