Retail inflation in India increased slightly in August 2025, reaching 2.07%, compared to 1.61% in July, according to government data released on Friday.
The main reason for this rise is the increase in prices of vegetables, meat, fish, oils, fats, eggs, and personal care items.
In August 2024, inflation based on the Consumer Price Index (CPI) was 3.65%. After falling for nine consecutive months, inflation has now shown an upward trend again.
As per the National Statistical Office (NSO), annual inflation during August 2025 was (-)0.69%, compared to August 2024.
The NSO said, “The increase in headline inflation and food inflation during August 2025 is mainly due to rising prices of vegetables, meat, fish, oils, fats, personal care, and eggs.”
The government has directed the Reserve Bank of India (RBI) to ensure inflation remains at 4% with a margin of ±2%. This means retail prices will be closely monitored to protect consumers from sharp increases in daily essentials.
