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CPI slips to 1.55% in July with continuous decline in food prices
Aug-12-2025

With a continuous decline in food prices, India's retail inflation, as measured by the Consumer Price Index (CPI), slipped to 1.55 per cent (Provisional) in July 2025 as compared to 2.10 per cent in the June 2025. It is the lowest reading since June 2017. The CPI-based inflation was 3.60 per cent in July 2024. This also marked the ninth straight month inflation has fallen. This is the sixth consecutive month when the CPI-based inflation remains comfortably within the Reserve Bank of India’s (RBI) medium-term target of 4 per cent and well inside the 2-6 per cent tolerance band. Food inflation, measured by the Consumer Food Price Index (CFPI), stood at (-) 1.76 per cent in July against (-) 1.01 per cent in the previous month. The decline was mainly due to lower inflation in pulses and products, vegetables, cereals, eggs, sugar and confectionery, education, and transport and communication.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in July 2025 stood at 1.18 per cent over 1.72 per cent in June 2025. The Urban CPI (General) stood at 2.05 per cent in July as against 2.56 per cent in June. The index value for Rural, Urban and Combined CPI (General) stood at 197.6, 194.2 and 196.0 respectively, in July 2025. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of July 2025, NSO collected prices from 99.83 per cent villages and 98.38 per cent urban markets while the market-wise prices reported therein were 88.41 per cent for rural and 91.80 per cent for urban.

Besides, inflation in Food and beverage eased further to (-) 0.84 per cent in July 2025 from (-) 0.20 per cent in June 2025, with prices of vegetable declining to (-) 20.69 per cent in the reporting month from (-) 19.00 per cent in the previous month. Inflation in pulses and products remained in deflationary territory at (-) 13.76 per cent in July over (-) 11.76 per cent in June. Inflation in meat and fish came at (-) 0.61 per cent over (-) 1.62 per cent in preceding month. Inflation for cereals came down to 3.03 per cent in July from 3.73 per cent in June. The inflation rate for milk and milk products inched down to 2.74 per cent in July from 2.80 per cent in June. Further, 

Clothing and footwear inflation for the month of June edged down to 2.50 pe cent from 2.55 per cent in June, while Housing inflation slightly down at 3.17 per cent in the reporting month from 3.24 per cent in the prior month. Education inflation slowed to 4.00 per cent in July from 4.37 per cent in June, and transport and communication inflation fell sharply to 2.12 per cent in July from 3.90 per cent in June.  However, health inflation rose to 4.57 per cent in July from 4.38 per cent in June, and fuel and light inflation edged up to 2.67 per cent in July from 2.55 per cent in the previous month.
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