India’s Retail Inflation Cools to 1.55% in July 2025, Food Prices See Rare Deflation

The Ministry of Statistics and Programme Implementation (MoSPI) has released the Consumer Price Index (CPI) data for July 2025, indicating a sharp cooling in retail inflation, which stood at 1.55% year-on-year, down from 2.10% in June 2025. This marks the lowest CPI inflation rate since June 2017, offering some relief for consumers and policymakers alike.

📉 Key Highlights from the July 2025 CPI Report:

🏷️ 1. Headline Inflation (CPI General):

  • All-India inflation: 1.55% (July 2025 vs July 2024)
  • Decline of 55 basis points from June 2025 (2.10%)
  • At its lowest in over eight years

🍎 2. Food Inflation (CFPI):

  • Overall: -1.76% (deflation)
  • Rural: -1.74%
  • Urban: -1.90%
  • Sharp drop from -1.01% in June 2025

🟢 3. Key Factors Behind the Decline:

  • Base effect from high food inflation in July 2024
  • Price drops in:
    • Vegetables
    • Pulses & products
    • Cereals
    • Sugar and confectionery
    • Eggs
    • Transport & communication
    • Education

📊 CPI & CFPI Inflation Summary Table (%):

CategoryJuly 2025June 2025July 2024
CPI (Rural)1.181.724.10
CPI (Urban)2.052.563.03
CPI (Combined)1.552.103.60
CFPI (Rural)-1.74-0.875.89
CFPI (Urban)-1.90-1.174.63
CFPI (Combined)-1.76-1.015.42

🏠 Sector-Wise Highlights:

  • 🏠 Housing:
    Urban inflation remained steady at 3.17%, marginally down from 3.18% in June.
  • 🎓 Education:
    Inflation moderated to 4.00%, down from 4.37% in June.
  • 🩺 Health:
    Saw a slight increase to 4.57% from 4.38% in June.
  • 🚗 Transport & Communication:
    Notable cooling to 2.12%, down from 3.90% in June.
  • 🔥 Fuel & Light:
    Rose slightly to 2.67%, from 2.55% in June.

🔍 Monthly Index Movement (July over June 2025):

Index TypeCPI (Combined)CFPI (Combined)
% Change0.93%2.03%

Despite the year-on-year decline in food prices, monthly CFPI rose due to short-term price movement, possibly linked to seasonal demand or supply adjustments.

📆 Next CPI Release:

The CPI data for August 2025 will be published on September 12, 2025.

For detailed CPI tables and annexures, visit the official websites:
🔗 www.cpi.mospi.gov.in or
🔗 esankhyiki.mospi.gov.in

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