India’s July consumer price inflation at an 8-year low of 1.55%
By Unnikrishnan | 13 Aug 2025
Consumer price inflation in India, based on the All-India Consumer Price Index (CPI) hit an 8-year low of 1.55 per cent in July 2025 on the back of a sharp decline in food prices, especially in the prices of pulses and its products, vegetables, cereals and products, egg and sugar as also the cost of education, transport and communication.
This is the lowest year-on-year CPI-based inflation rate after June 2017.
Headline inflation for the rural areas is provisionally estimated to be 1.18 per cent in July 2025 against 1.72 per cent in June 2025. Inflation rate for the urban areas stood at 2.05 per cent in July 2025 against 2.56 per cent in June, as per provisional estimates.
Food price inflation rate based on All-India Consumer Food Price Index (CFPI) stood at (-) 1.76 per cent year-on-year in July 2025. The corresponding inflation rates for the rural and urban areas stood at (-) 1.74 per cent and (-) 1.90 per cent, respectively. At (-) 1.76 per cent, food price inflation is the lowest since January 2029.
The CFPI based food inflation for rural areas stood at (-)1.74 per cent in July 2025 against (-)0.87 per cent in June. For urban areas the food price inflation declined to (-)1.90 per cent in July 2025 from (-)1.17 per cent in June, as per provisional figures.
House price inflation, based on the housing index (for Urban areas) stood at 3.17 per cent in July 2025, slightly lower tham the 4.18 per cent level of the previous month.
Education inflation, which is based on a combined index for both rural and urban areas declined to 4 per cent in July 2025 from 4.37 per cent for June.
Inflation rate for the healthcare sector, which is common for both rural and urban areas, was higher at 4.57 per cent in July 2025 compared to 4.38 per cent in June.
Inflation rate for the transport and communication sector, based on the combined index for both rural and urban areas stood lower at 2.12 per cent in July 2025 against 3.90 per cent in June.
Inflation rate based on the combined index for fuel and light increased to 2.67 per cent in July 2025 from 2.55 per cent in June.
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