SF Prep Notes

Retail inflation falls to 1.55% in July 2025, lowest since June 2017

India's year-on-year CPI inflation for July 2025 came in at 1.55% (provisional), 55 basis points below June and the lowest since June 2017, data released by MoSPI on 12 August 2025 showed.

Summary

India's year-on-year headline inflation based on the All India Consumer Price Index (CPI) stood at 1.55% (provisional) in July 2025, a decline of 55 basis points from June 2025 and the lowest year-on-year inflation since June 2017, according to data released by the Ministry of Statistics and Programme Implementation on 12 August 2025. Food inflation measured by the Consumer Food Price Index (CFPI) was -1.76%, the lowest since January 2019. Rural inflation was 1.18% and urban inflation 2.05%; the index uses base year 2012=100.

Key facts

Released
12 Aug 2025, MoSPI
Headline CPI (July 2025)
1.55% (provisional), down 55 bps from June
Record
Lowest since June 2017
Food (CFPI)
-1.76%, lowest since January 2019
Rural / Urban
1.18% / 2.05%
Base year
2012=100

Practice MCQs 4 questions

Q1

What was India's year-on-year CPI headline inflation for July 2025 (provisional), as released on 12 August 2025?

Show answer

Correct answer: B — 1.55%

MoSPI data showed headline CPI inflation of 1.55% (provisional) for July 2025, 55 basis points lower than June 2025.

Q2 Advanced

The July 2025 headline CPI inflation was the lowest year-on-year inflation since which month?

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Correct answer: C — June 2017

The 1.55% headline inflation for July 2025 was the lowest year-on-year inflation since June 2017; January 2019 is the reference point for food inflation.

Q3 Advanced

Consider the following statements about India's CPI data for July 2025: 1. Food inflation measured by the CFPI was negative. 2. Rural inflation was higher than urban inflation. Which of the above is/are correct?

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Correct answer: A — 1 only

Statement 1 is correct: CFPI-based food inflation was -1.76%, the lowest since January 2019. Statement 2 is incorrect: rural inflation was 1.18%, lower than urban inflation of 2.05%.

Q4

What is the base year of the Consumer Price Index series used for the July 2025 inflation data?

Show answer

Correct answer: D — 2012

The CPI numbers for rural, urban and combined released for July 2025 are on base 2012=100.

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