SF Prep Notes

CPI inflation rises to 2.07% in August 2025; food inflation stays negative

India's retail inflation based on the Consumer Price Index rose to 2.07% (provisional) in August 2025, while food inflation was -0.69%, negative for the third straight month, MoSPI said on 12 September 2025.

Summary

India's year-on-year retail inflation based on the All India Consumer Price Index (CPI) was 2.07% (provisional) in August 2025, the Ministry of Statistics and Programme Implementation said on 12 September 2025. Headline inflation rose by 46 basis points from July 2025. Food inflation based on the Consumer Food Price Index (CFPI) was -0.69%, negative for the third consecutive month, though 107 basis points higher than in July. The ministry attributed the rise mainly to higher inflation in vegetables, meat and fish, oils and fats, personal care and effects, and eggs. Rural inflation was 1.69% and urban inflation 2.47%. The CPI series uses 2012 as its base year.

Key facts

CPI inflation Aug 2025
2.07% (provisional), +46 bps over July
Food (CFPI)
-0.69%, negative for third month
Rural / urban
1.69% / 2.47%
Housing inflation
3.09%
Base year
2012=100

Practice MCQs 3 questions

Q1

What was India's CPI-based retail inflation (provisional) for August 2025?

Show answer

Correct answer: C — 2.07%

All India CPI inflation was 2.07% (provisional) in August 2025, 46 basis points higher than in July; 0.52% was the WPI figure for August.

Q2 Advanced

What was the base year of the CPI series used for the August 2025 inflation release?

Show answer

Correct answer: B — 2012

The release gives Consumer Price Index numbers on base 2012=100 for rural, urban and combined.

Q3 Advanced

Consider the following statements about CPI data for August 2025: 1. Food inflation based on CFPI was negative for the third consecutive month. 2. Rural headline inflation was higher than urban headline inflation. Which of the above is/are correct?

Show answer

Correct answer: A — 1 only

Statement 1 is correct: CFPI food inflation was -0.69%, negative for the third month in a row. Statement 2 is incorrect: rural inflation was 1.69% while urban inflation was 2.47%.

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