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NSO Report : India’s Retail Inflation Hits 8-Year Low of 1.55% in July 2025.

Economy Business | Dated: 15 Aug 2025

On August 12, 2025, the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI) announced that India’s retail inflation, measured by the Consumer Price Index (CPI) for rural, urban, and combined data, declined to 1.55% in July 2025, marking its lowest level in eight years.

🎯 Key Highlights:

  • - This significant drop in retail inflation represents the lowest year-on-year (YoY) rate since June 2017. The decline is notable as it continues the trend of six consecutive months where inflation has remained below the Reserve Bank of India’s (RBI) medium-term target of 4%.
  • - According to the NSO report, the Consumer Price Index (CPI) for July 2025 showed a considerable decrease from the 2.10% inflation rate recorded in June 2025. The consistent moderation in prices across various sectors contributed to this historic low.

💡 Other Important Facts:

  • (i) Food inflation, a major component of retail inflation, fell sharply to 1.76% in July 2025. This is the lowest food inflation recorded since January 2019. Urban food inflation stood at 1.74%, while rural food inflation was slightly higher at 1.90%, indicating price easing across both regions.
  • (ii) The rural sector’s overall headline inflation rate was recorded at 1.18% in July 2025, whereas the urban sector experienced a sharper decline, with the inflation rate dropping to 2.05%. This divergence reflects varying consumption patterns and market dynamics between rural and urban areas.
  • (iii) The decline in inflation is expected to provide relief to consumers and may influence monetary policy decisions in the coming months. With inflation staying well within RBI’s target range, there is potential scope for economic stimulus and measures to further boost domestic demand.

📚 Test Your Knowledge:

Recently, India’s retail inflation in July 2025 was recorded at what percentage?

Correct Answer: 1.55%

🚀 Quick Recap: