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Retail inflation increases to 2.07% in August
Sep-12-2025

India's retail inflation, as measured by the Consumer Price Index (CPI), increased to 2.07 per cent in the month of August 2025 from a revised 1.61 per cent in July 2025 on account of rise in food inflation. The CPI was 3.65 per cent in August 2024. However, the August inflation remained within the Reserve Bank of India’s (RBI) medium-term target of 4 per cent. Food inflation, measured by the Consumer Food Price Index (CFPI), stood at (-) 0.69 per cent in August against (-) 1.76 per cent in the previous month. An increase food inflation during the month of August, 2025 is mainly attributed to increase in inflation of Vegetables, Meat and fish, Oil and fats, Personal care and affects, Egg etc.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in August 2025 stood at 1.69 per cent over 1.18 per cent in July 2025. The Urban CPI (General) stood at 2.47 per cent in August as against 2.10 per cent in July. The index value for Rural, Urban and Combined CPI (General) stood at 198.7, 195.0 and 197.0 respectively, in August 2025. The price data are collected from selected 1181 villages and 1114 urban Markets covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of August, 2025, NSO collected prices from 99.83 per cent villages and 98.56 per cent urban markets while the market-wise prices reported therein were 88.37 per cent for rural and 91.96 per cent for urban.

Besides, inflation in Food and beverage rose to 0.05 per cent in August 2025 from (-) 0.84 per cent in July 2025, with prices of vegetable increasing to (-) 15.92 per cent in the reporting month from (-) 20.69 per cent in the previous month. Inflation in meat and fish came at 1.48 per cent in the month under review over (-) 0.61 per cent in preceding month. Inflation in Oils and fats jumped to 21.24 per cent in August from 19.24 per cent in the previous month. Meanwhile, inflation in pulses and products remained in deflationary territory at (-) 14.53 in August over (-) 13.76 per cent in July. Inflation for cereals came down to 2.70 per cent in August from 3.03 per cent in July. The inflation rate for milk and milk products inched down to 2.63 in August from 2.74 per cent in July. 

Clothing and footwear inflation edged down to 2.33 per cent in August from 2.50 per cent in July, while Housing inflation slightly down at 3.09 per cent in the reporting month from 3.17 per cent in the prior month. Education inflation slowed to 3.60 per cent in August from 4.00 per cent in July, and transport and communication inflation fell sharply to 1.94 per cent in August from 2.12 per cent in July.  Health inflation also came down marginally to 4.40 per cent in August from 4.57 per cent in July, and fuel and light inflation edged down to 2.43 per cent in August from 2.67 per cent in July. Moreover, inflation for Personal care and effects inched up to 16.61 per cent in August 2025 from 15.12 per cent in July 2025. 
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