Retail inflation rates which dropped to 1.55, in July 2025, eight years low shows a reduction that is in line with the WPI trends. This was enabled by the decreasing prices of many food items despite the surge or increase in the prices of edible corn oils due to geopolitical issues in the world market. The controlled inflation supports economic planning and the monetary policy efforts.
Overview of inflation in India
- World Trade Index (WPI) being the key inflation indicator in India follows the price changes in wholesale prices.
- The main food products recorded an overall reduction of 6.29 percent in July where there was an overall decline in vegetables, potatoes, onions, fruits and pulses by 28.9 percent and high protein foods such as meat, fish, and eggs by 1.09 percent.
- Fuel and power prices went down by 2.43 percent with a global change of 4.3 percent and 5.7 percent respectively in terms of commodity prices.
- Prices of manufactured goods rose by 2.05% with non-metallic mineral products, leather, and apparel increasing by 2.7 and 3.4 respectively.
- The most notable cause that resulted in deflation in July was food prices and it is expected that August 2025 judgments will help to restore the situation in August.
- The retail rate of inflation even fell to 1.55 in July 2025 which is an eight-year low and mainly contributed by declining food prices even though the prices of edible corn oil went higher as a result of geopolitical factors.
Month: Current Affairs - August 17, 2025
Category: current affairs daily