Archive · 10 Aug 2025
India's July Inflation Expected to Hit Record Low of 1.4%
In July, prices in India are estimated to have fallen to their lowest level since 2014.
This drop is mainly due to cheaper food, especially pulses.
Experts think this is a temporary dip, and prices are expected to go up again soon.
The Reserve Bank of India has adjusted its predictions because of this, but hasn't changed its key interest rate, as they are monitoring the potential for future price increases.
India's retail inflation is estimated to fall to a record low of 1.4% in July.
This would be the lowest inflation since January 2014.
Food prices, especially pulses, drove the decline due to favorable base effects.
Economists anticipate inflation to rise from August onwards.
The Reserve Bank of India lowered its full-year inflation projection to 3.1%.
- Who
- Economists polled by Mint
- What
- India's retail inflation is estimated to fall to a record low of 1.4% in July.
- When
- July
- Where
- India
- Why
- Due to the favorable base effect, especially for food prices.
Optimistic View
Cautious View
Inflation Trend and Outlook
Optimistic View
The recent decline in inflation suggests a positive trend in price stabilization.
Cautious View
There is potential for inflation to rise in the latter part of the year, driven by supply-side factors and potential policy adjustments.
- CPI Estimate (July)
- 1.4%
- Previous CPI (June)
- 2.1%
- Lowest CPI Since
- January 2014
- RBI Full-Year Projection
- 3.1%