Retail inflation rises marginally in August, Kerala records highest

Retail inflation in India rose slightly to 2.07% in August 2025, up from 1.61% in July, driven largely by higher prices of vegetables, meat and fish, according to official data released by the National Statistics Office (NSO) on Friday. The consumer price index (CPI)-based inflation stood at 3.65% in August 2024, highlighting a year-on-year decline, with the annual inflation during August 2025 over August 2024 recorded at (-) 0.69%, according to information. NSO attributed the rise in headline and food inflation to price increases in vegetables, meat and fish, oils and fats, personal care items, and eggs. The Reserve Bank of India (RBI), which has a mandate to maintain inflation at 4% with a margin of 2% on either side, according to information, is expected to closely monitor the trend as food price fluctuations continue to play a critical role in shaping inflation dynamics.

Rural areas saw headline inflation climb from 1.18 percent in July to 1.69 percent in August, while urban areas recorded an increase from 2.10 percent to 2.47 percent. Among other categories, housing, education, health, transport, and fuel experienced moderate price changes, with urban housing inflation at 3.09 percent and health costs rising by 4.40 percent.
State-wise, Kerala recorded the highest year-on-year inflation at 9.04 percent, followed by Jammu and Kashmir at 3.75 percent and Punjab at 3.51 percent. Key food items showed mixed trends, with tomatoes rising sharply by 16.92 percent, while staples such as onions and potatoes continued to see price declines.The CPI data is based on extensive collection from over 1,100 villages and 1,100 urban markets, covering nearly all regions across the country. The next report, detailing September inflation, is scheduled to be released on October 13, 2025.

(Business Correpondent)