New Delhi: India’s Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of July dropped to 1.55. There is decline of 55 basis points in headline inflation of July, 2025 in comparison to June, 2025, the lowest year-on-year inflation rate after June 2017, government data showed on Tuesday.
Food inflation, a key component of the CPI also went downward.
“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,” Ministry of Statistics & Programme Implementation data showed.
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, said Ministry of Statistics & Programme Implementation.
It may be recalled that the Reserve Bank of India had last inn its Monetary Policy last week had pegged India’s CPI inflation at 3.1 percent for FY2025-26, as the steady progress of the monsoon and robust kharif sowing are expected to keep food prices in check.
RBI Governor Sanjay Malhotra said, “The inflation outlook for 2025-26 has become more benign than expected in June. Large favourable base effects combined with steady progress of the southwest monsoon, healthy kharif sowing, adequate reservoir levels and comfortable buffer stocks of foodgrains have contributed to this moderation.”
CPI inflation, however, is likely to edge up above 4 per cent by Q4 2025-26 and beyond, as unfavourable base effects, and demand side factors from policy actions come into play. Barring any major negative shock to input prices, core inflation is likely to remain moderately above 4 per cent during the year, he explained.
With Agency Inputs
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