Retail Inflation Plummets to Eight-Year Low in July

Retail inflation reached an eight-year low of 1.55% in July, driven by decreased prices in food items such as vegetables and cereals. The consumer price index showed a reduction from previous months, attributed to a favorable base effect, and lower inflation rates in several categories including food and transport.

Devdiscourse News Desk | New Delhi | Updated: 12-08-2025 16:27 IST | Created: 12-08-2025 16:27 IST

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Retail inflation has dropped to its lowest point in eight years, hitting 1.55% in July. This substantial decrease is largely due to lower food item prices, notably in vegetables and cereals.

The consumer price index (CPI)-based inflation fell from 2.1% in June and 3.6% in July 2024, marking the lowest rate since June 2017 when it stood at 1.46%, according to government data released on Tuesday.

The National Statistics Office attributed the significant decline in both headline and food inflation primarily to a favorable base effect, along with reduced inflation in pulses, transport, and education sectors, among others. The food inflation rate was recorded at (-)1.76% year-on-year for July.

(With inputs from agencies.)