India’s retail inflation slows to 1.55% in July, lowest since 2017, on easing food prices

Falling food prices and a favourable base effect reduced India’s retail inflation to 1.55% in July, its lowest since June 2017, government data showed on Tuesday.

This also marked the ninth straight month inflation has fallen.

The Consumer Price Index (CPI)-based inflation was 2.10% in June 2025. Food inflation, measured by the Consumer Food Price Index (CFPI), stood at -1.76% 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 data showed.

In rural areas, CPI inflation fell to 1.18% in July from 1.72% in June, while in urban areas it eased to 2.05% from 2.56%. Rural food inflation dropped to -1.74%, and urban food inflation fell to -1.90%.

Housing inflation in July was 3.17% (3.18% in June), education inflation slowed to 4.00% (4.37% in June), and health inflation rose to 4.57% (4.38% in June).

Transport and communication inflation fell sharply to 2.12% from 3.90% in June, while fuel and light inflation edged up to 2.67% from 2.55%.

Earlier this month, the Reserve Bank of India (RBI) left the repo rate unchanged at 5.50% and said the inflation outlook was "more benign".

The central bank is mandated to not let inflation fall below 2% or rise above 6% for three consecutive quarters.