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2025-09-12 19:21:43
India's August Inflation Rate Rises to 2.07%, Food Price Decline Narrows. (1) India's consumer inflation rate rose to 2.07% year-on-year in August 2025, up from an upwardly revised 1.61% in July, broadly in line with market expectations. (2) This marked the first monthly increase in inflation in ten months, but remained close to the 2% lower tolerance threshold under the Reserve Bank of India's inflation targeting framework. (3) Food prices, which account for nearly half of the CPI basket, fell 0.69%, narrowing the 1.76% drop in July. (4) Inflation rose for betel nut, tobacco, and other items (2.49% vs. 2.45%) and miscellaneous items (5.05% vs. 5.01%), while the growth rate of clothing and footwear costs slowed (2.33% vs. 2.50%), housing (3.09% vs. 3.17%), and fuel and lighting (2.43% vs. 2.67%).
