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Retail Inflation Falls to 1.55% in July 2025 – Lowest Since June 2017
Context:
Retail inflation based on the Consumer Price Index (CPI) declined to 1.55% in July 2025, driven by deflation in key food items, marking the lowest level in eight years.
Inflation Measurement:
- In India, inflation is primarily measured through the Consumer Price Index (CPI) and Wholesale Price Index (WPI).
- The CPI is released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.
- CPI includes both rural and urban indices and measures changes in the price level of a fixed basket of goods and services consumed by households.
Retail Inflation July 2025 Data Highlights:
- Overall CPI inflation:55%, well below the RBI’s target band of 2–6%.
- Food & beverages inflation:-0.8% (deflation), with sharp contractions in vegetables (-21%) and pulses (-14%).
- Core inflation (excluding food & fuel):1%, near the RBI’s 4% target.
- Fuel & light inflation:7% (up from 2.5%).
- Housing inflation: stable at 3.2%.
Reasons for Decline:
- High statistical base from previous year.
- Good monsoon, healthy reservoir levels, strong kharif sowing.
- International commodity prices subdued due to weak global demand.
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