India's Retail Inflation Plummets to 8-Year Low of 1.55% in July

India's retail inflation has fallen to its lowest point in eight years. According to official data released on August 12, the Consumer Price Index (CPI) dropped to 1.55% in July 2025, a sharp decrease from 2.10% in June.

The decline is largely due to a steep fall in food prices. The Consumer Food Price Index (CFPI) moved deeper into negative territory at -1.76%, with prices for pulses, vegetables, cereals, eggs, and sugar all contributing to the decrease.
The data shows that both rural and urban areas experienced an easing of inflationary pressures. Rural inflation fell to 1.18%, and urban inflation dropped to 2.05%.

While some sectors saw moderate price increases, such as housing and education, which rose by 3.17% and 4%, respectively, others showed a notable slowdown. Transport and communication inflation, for instance, declined to 2.12%. Health inflation, however, saw a slight increase to 4.57%, while fuel and light inflation also rose marginally to 2.67%.

Among states, Kerala recorded the highest inflation rate at 8.89%. The nationwide trend, however, signals a significant easing of price pressures across the economy.

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