India’s Retail Inflation Cools to 1.55% in July, Lowest Since June 2017

India’s retail inflation, measured by the Consumer Price Index (CPI), eased to 1.55% in July 2025, marking the lowest level since June 2017. This is a notable drop from the 2.10% recorded in June 2025, according to data released on Tuesday.

Food Inflation Deepens in Negative Zone

Food prices continued to decline sharply, with food inflation slipping further into deflationary territory at -1.76% in July, compared to -1.06% in June.

• Vegetables: Inflation plunged to -20.69%, down from -19% in the previous month.
• Pulses: Inflation dropped to -13.76% from -11.76%, reflecting easing prices in essential food items.

Core Components Show Mixed Trends

• Fuel and Light: Inflation edged up slightly to 2.67% in July from 2.55% in June.
• Housing: Inflation saw a marginal decline to 3.17%, compared to 3.24% in June. Notably, housing inflation is calculated only for urban areas.
• Clothing and Footwear: Price pressures moderated to 2.50%, down from 2.55% in June.

Rural vs Urban Inflation Trends

Rural Sector

• Headline Inflation: Dropped to a provisional 1.18% in July, down from 1.72% in June.
• Food Inflation: Deepened into deflation at -1.74% in July (Provisional), compared to -0.87% in June.

Urban Sector

• Headline Inflation: Fell to 2.05% in July (Provisional), from 2.56% in the previous month.
• Food Inflation: Continued its decline, reaching -1.90% in July, from -1.17% in June.

The latest data indicates a broad-based cooling of price pressures across both rural and urban segments, largely driven by significant deflation in key food categories. While some core components like fuel registered a slight uptick, the overall inflation environment saw an improvement.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.