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

Retail inflation in India eased sharply to an eight-year low of 1.55% in July, driven by subdued prices of key food items such as vegetables and cereals, according to data released by the National Statistics Office (NSO) on Tuesday.
The consumer price index (CPI)-based inflation stood at 2.1% in June and 3.6% in July 2024. The latest reading is the lowest since June 2017, when retail inflation was recorded at 1.46%.“The significant decline in headline inflation and food inflation during July 2025 is mainly attributed to the favourable base effect and the fall in prices of pulses and products, transport and communication, vegetables, cereals and products, education, eggs, sugar, and confectionery,” the NSO said in its statement.
Year-on-year food inflation contracted by 1.76% in July, reflecting a broad-based cooling in prices. The fall in vegetable and cereal prices, along with easing costs in several non-food categories, contributed to the sharp moderation in overall inflation.Economists view the latest figures as a positive sign for household budgets and a potential factor for the Reserve Bank of India (RBI) to consider while framing its upcoming monetary policy stance.

(Business Correspondent)