Retail inflation falls to 1.55% in July 2025, lowest since 2017 on cheaper food prices
PTC Web Desk: India’s retail inflation dropped sharply to 1.55% in July 2025 — the lowest level in eight years — according to provisional government data. This is a fall of 55 basis points from June’s 2.10%.
Food prices fell even more, with food inflation at -1.76% in July, the lowest since January 2019. Both rural and urban areas saw a drop in food prices — rural food inflation was -1.74% and urban was -1.90%.
The fall in overall inflation was mainly due to a favourable base effect and lower prices in items such as pulses, vegetables, cereals, transport, education, eggs, and sugar. Rural inflation eased to 1.18% in July from 1.72% in June, while urban inflation came down to 2.05% from 2.56%.
Some categories showed mixed changes — housing inflation stayed at 3.17%, education inflation dropped to 4.00%, and health inflation rose slightly to 4.57%. Transport and communication inflation fell to 2.12%, while fuel and light inflation inched up to 2.67%.
Experts say inflation may have reached its lowest point after nine straight months of decline.
- With inputs from agencies
