Date: 12 August 2025
India’s annual retail inflation dropped to 1.55% in July 2025, the lowest in eight years, driven by softened food prices. This moderation allows some monetary policy flexibility, though economists caution about cyclical base effects that may reverse the trend. CPI is projected to remain under the RBI’s 4% target through 2025, but caution against early rate cuts is advised given potential market constraints.
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