Big Win for Consumers: Inflation Hits 8- Year Low, Pulses & Veggies now Cheaper!

New Delhi (The Uttam Hindu): Due to softening of prices of food items, especially vegetables and pulses, the rate of inflation based on Consumer Price Index declined for the ninth consecutive month to 1.55 percent in July this year.

According to the data released by the National Statistical Office on Tuesday, the retail inflation rate in July was 1.55 percent, which is the lowest level since June 2017. Earlier, it was recorded at 2.10 percent in June 2025 and 5.42 percent in July 2024.

The rate of food inflation based on the prices of food items remained at minus 1.76 percent, which is the lowest since January 2019. In June, it was minus 1.01 percent.

The biggest reason for the reduction in inflation rate is the sharp fall in the prices of vegetables and pulses as compared to a year ago. Vegetables became cheaper by 20.69 percent and pulses and their products by 13.76 percent as compared to a year ago. The prices of spices decreased by 3.07 percent and the prices of meat and fish decreased by 0.61 percent.

Apart from these, the inflation rate of some food items remained relatively low. These include cereals (3.03 percent), eggs (2.26 percent), milk and dairy products (2.74 percent) and sugar and confectionery products (3.28 percent).

On the other hand, the prices of fruits increased more rapidly in July. Their inflation rate was 14.42 percent. Oil and fat products became costlier by 19.24 percent. The inflation rate of fuel and electricity category was 2.67 percent. Inflation in the health category was 4.57 percent and in the education category it was 4 percent.

In a statement issued after the August Monetary Policy Committee meeting, the Reserve Bank has projected the retail inflation rate to be 2.1 percent in the second quarter (July-September) of the current financial year. According to it, inflation is estimated to be 3.1 percent in the third quarter and 4.4 percent in the fourth quarter.