Rama Krishna Sangem
India’s inflation eased to the lowest in eight years in July, though an expected uptick in prices in the coming months could limit the space for further interest rate cuts, economists said. This is the lower sided of Reserve Bank of India’s mandated inflation range of 2-4 per cent. That means, our country is inching closer to slowdown.
The consumer price index rose 1.55% from a year earlier last month, according to data released Tuesday by the Statistics Ministry, higher than the 1.40% increase forecast by economists in a Bloomberg survey. Inflation slowed to 2.10% in June and had dipped to 1.46% in June 2017, said a Press Information Bureau (PIB) of India on August 12, Tuesday.
Food Inflation: Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of July, 2025 over July, 2024 is -1.76% (Provisional). Corresponding inflation rates for rural and urban are -1.74% and -1.90%, respectively. All India inflation rates for CPI (General) and CFPI over the last 13 months are shown below. A decline of 75 basis points is observed in food inflation in July, 2025 in comparison to June, 2025. The food inflation in July, 2025 is the lowest after January, 2019.
The significant decline in headline inflation and food inflation during the month of July, 2025 is mainly attributed to favorable base effect and to decline in inflation of Pulses and Products, Transport and communication, Vegetables, Cereal and products, Education, Egg and Sugar and confectionery.
Rural inflation declined
Rural Inflation: Significant decline in headline and food inflation in rural sector observed in July, 2025. The headline inflation is 1.18% (Provisional) in July, 2025 while the same was 1.72% in June, 2025. The CFPI based food inflation in rural sector is observed as -1.74% (Provisional) in July, 2025 in comparison to -0.87% in June, 2025.
Urban Inflation: A decline from 2.56% in June, 2025 to 2.05% (Provisional) in July, 2025 is observed in headline inflation of urban sector. Decline is also observed in food inflation from -1.17% in June, 2025 to -1.90% (Provisional) in July, 2025.
Housing Inflation: Year-on-year Housing inflation rate for the month of July, 2025 is 3.17% (Provisional). Corresponding inflation rate for the month of June, 2025 was 3.18%. The housing index is compiled for urban sector only.
Education Inflation: Year-on-year Education inflation rate for the month of July, 2025 is 4.00% (Provisional). Corresponding inflation rate for the month of June, 2025 was 4.37%. It is combined education inflation for both rural and urban sector.
Health Inflation: Year-on-year Health inflation rate for the month of July, 2025 is 4.57% (Provisional). Corresponding inflation rate for the month of June, 2025 was 4.38%. It is combined health inflation for both rural and urban sector.
Transport & Communication: Year-on-year Transport & communication inflation rate for the month of July, 2025 is 2.12%(Provisional). Corresponding inflation rate for the month of June, 2025 was 3.90%. It is combined inflation rate for both rural and urban sector.
Fuel & light: Year-on-year Fuel & light inflation rate for the month of July, 2025 is 2.67% (Provisional). Corresponding inflation rate for the month of June, 2025 was 2.55%. It is combined inflation rate for both rural and urban sector.
