The Consumer Price Index (CPI) inflation for the month of July 2025 touched an 8-year low of 1.55%. The headline retail inflation cooled sharply touching 1.55% year-on-year — the lowest since June 2017 — according to provisional data. This marks a 55-basis-point drop from June 2025 levels.Food inflation, measured by the Consumer Food Price Index (CFPI), slipped further into negative territory at -1.76% year-on-year, its lowest since January 2019. Rural food inflation stood at -1.74%, while urban food inflation came in at -1.90%. The fall represents a 75-basis-point decline from the previous month, driven by easing prices of pulses, vegetables, cereals, eggs, sugar, and transport and communication services.Rural areas saw headline inflation ease to 1.18% from 1.72% in June, with food inflation dropping from -0.87% to -1.74%. Urban inflation also moderated, with the headline rate falling to 2.05% from 2.56%, and food inflation declining to -1.90% from -1.17%.The broad-based cooling is attributed to a favourable base effect and sustained moderation in key food and service categories, providing relief to consumers across both rural and urban India.The combined rural and urban fuel and light inflation rate increased to 2.67% (Provisional) in July 2025 from 2.55% in June 2025.The urban sector housing inflation rate stood at 3.17% (Provisional) for July 2025, showing a slight decrease from 3.18% recorded in June 2025. This index exclusively covers urban areas.The combined rural and urban education inflation rate registered at 4.00% (Provisional) in July 2025, displaying a decline from June 2025’s rate of 4.37%.The consolidated health inflation rate across rural and urban sectors reached 4.57% (Provisional) in July 2025, indicating an increase from 4.38% observed in June 2025.The overall transport and communication inflation rate for both rural and urban areas decreased to 2.12% (Provisional) in July 2025, compared to 3.90% in June 2025.
