India Inflation News

India's Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of July dropped to 1.55. There is decline of 55 basis points in headline inflation of July, 2025 in comparison to June, 2025, the lowest year-on-year inflation rate after June 2017, government data showed on Tuesday.

The Finance Ministry figures show that the average inflation under Prime Minister Narendra Modi’s tenure stands at 5.1 per cent, compared to 8.1 per cent in the UPA regime.

WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent in May.

FY25 concluded on a strong note for India's granaries, with robust cereal production ensuring ample stock levels. This abundance is expected to help contain cereal inflation in the near term.

The annual rate of inflation based on the WPI eased further to a 14-month low of 0.39 per cent in May this year from 0.85 per cent in April and 2.05 per cent in March, according to the Ministry of Commerce and Industry data.

New Delhi: India's Wholesale Price Index (WPI) inflation eased at 13-month's low to 0.85% for the month of April 2025 as compared to the same period last year, official data have shown.  

Inflation Rate In India 2025: The Monetary Policy Committee (MPC), in its latest meeting, has maintained a "Neutral" stance, indicating that future rate cuts will depend on incoming macroeconomic data.  

Given the subdued domestic demand conditions and soft global prices, non-food inflation is also expected to remain benign for the rest of the fiscal year, as per the report.

The slowing inflation marks a reversal of the increasing trend in the previous two months when the inflation rate touched 6.21 per cent in October.

The core CPI includes goods and services but excludes food and fuel, the prices of which are considered more volatile.

The wholesale price index (WPI) based inflation was 2.04 per cent in July. It was (-) 0.46 per cent in August last year.

Food prices rose 3.55 per cent in July compared with an increase of 8.68 per cent in June. Vegetable prices came down by as much as 8.93 per cent in July compared to a sharp increase of 38.76 per cent in June as the scorching heat wave in the northern states hit production.

The RBI kept the key policy repo rate unchanged at 6.5 per cent for a ninth consecutive meeting on Thursday as it continues to maintain a balance between accelerating economic growth and keeping inflation under control.

The higher inflation in June, 2024 is primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc, showed official data.

Onion prices played a spoilsport, rising by 58 percent in May, data showed.

Monsoon has knocked in North India. Due to the monsoon, the prices of vegetables have increased a lot. After which people who used to buy 1-1 kg of vegetables are now buying only 250 grams.

In April, the Reserve Bank had estimated the consumer price index (CPI) based retail inflation at 5.2 per cent during the fiscal 2023-24.

Inflation is increasing not only in India but all over the world. The big question is why even big countries are failing to control inflation.