CPI Inflation Falls to 1.55% in July 2025, Lowest in 8 Years
Why in the news
Consumer inflation slipped to 1.55% in July 2025 on falling food prices.
| Index | Tracks | Notes |
|---|---|---|
| CPI | Prices paid by consumers | Food, clothing, housing, fuel and light, miscellaneous; base year 2012 |
| WPI | Bulk business-to-business prices | Base year 2012 |
Inflation basics
- Demand-pull: demand exceeds supply.
- Cost-push: input costs lift prices.
RBI tools
- Repo rate makes loans costlier.
- Reverse repo and CRR pull money back to RBI, limiting market cash and lending.
- OMO sales of securities absorb surplus liquidity.
Exam angle
- Retail measure: CPI.
- Target range: 2% to 6%.