Archive · 13 Sep 2025
Tax Cuts May Cool Inflation; CPI Expected at 3.1% in FY26
In August 2025, the cost of things went up less than before, with inflation at 2.1%.
Experts think prices might keep going down because the government cut taxes, which should make things cheaper.
Food prices have been going down for three months.
Things like vegetables, fruits, and eggs are getting cheaper.
The forecast is that inflation will be around 3.1% in the coming year.
Consumer inflation was 2.1% in August 2025, a decrease from 3.7% in August 2024.
Government tax cuts may lead to lower prices.
Food prices have been in deflation for the past three months.
The Bank of Baroda (BoB) forecasts inflation at 3.1% in FY26.
BoB's Economic Condition Index suggests prices are softening.
- Who
- Consumers
- What
- Inflation may decrease due to tax cuts
- When
- August 2025 & FY26
- Where
- Not Specified
- Why
- Government tax cuts and decreasing food prices
- CPI Inflation (August 2025)
- 2.1%
- CPI Inflation (August 2024)
- 3.7%
- FY26 CPI Inflation Forecast
- 3.1%
- BoB ECI (First 10 Days of September 2025)
- -0.9%
Sources
India’s CPI Retail Inflation Live Updates: Will inflation dip further in August?
Inflation rises marginally to 2.07 pc in Aug on costly kitchen items
Retail inflation rises to 2.07% in Aug, yet rate cut hopes alive
Food inflation in negative zone for 3rd straight month - Economy News
Retail inflation rate inches up to 2.07% in August on a pickup in food prices
Headline Retail Inflation In August Rises Slightly to 2.07 pc from 1.61 pc
After 2 Months of Deflation, Telangana bounced Back Into Inflation
Retail inflation inches up to 2.07%
August inflation above 2% dents hopes of October rate cut: SBI Research
