Archive · 21 Aug 2025
India's Inflation Eases as GDP Growth Is Predicted
In July 2025, the rate at which prices went up (inflation) slowed down for workers in farms and rural areas.
Even though the cost of food like rice and vegetables increased a little, the overall rate of increase in prices went down.
Experts predict that India's economy will continue to grow, with an estimated growth of about 6.8% to 7.0% in the first few months of the financial year 2025-26.
Falling vegetable prices have led to a drop in inflation expectations.
Retail inflation for farm and rural workers eased in July 2025.
The Consumer Price Index for agricultural laborers increased by 1.23 points in July 2025.
Food Index increased for both agricultural and rural laborers in July 2025.
Food inflation in July 2025 was at -1.56% for agricultural laborers and -1.13% for rural laborers.
SBI Research predicts India's Q1 FY26 GDP will grow between 6.8% and 7.0%.
- Who
- Farm and rural workers, and SBI Research.
- What
- Retail inflation eased for farm, rural workers; SBI predicts GDP growth.
- When
- July 2025 (inflation data) and Q1 FY26 (GDP forecast).
- Where
- India
- Why
- Inflation eased due to changing prices and economists predict GDP growth.
Concerns on Private Capex
Focus on Economic Growth
Private investment
Concerns on Private Capex
Muted private investment is a concern for sustainable economic growth.
Focus on Economic Growth
Public investment should be complemented by private investment to aid sustainable growth.
- Farm Worker Inflation (July 2025)
- 0.77%
- Rural Worker Inflation (July 2025)
- 1.01%
- Farm Laborer CPI Increase (July 2025)
- 1.23 points
- Rural Laborer CPI Increase (July 2025)
- 1.30 points
- Q1 FY26 GDP Forecast
- 6.8%-7.0%
- RBI Inflation Forecast
- 3.1%
