India's inflation hits 8-year low at 1.76%

Business Aug 08, 2025

India's retail inflation dropped to 1.76% in July 2025, the lowest it's been in eight years and part of a steady nine-month decline.
Cheaper food—thanks to a solid spring harvest even with patchy monsoons—played a big role.
For the first time in over six years, inflation is now below the RBI's comfort zone of 2-6%.

Interest rates on hold at 5.50%

The RBI kept interest rates steady at 5.50%, giving them some breathing room as prices cool off.
Economists expect average inflation around 3.40% this fiscal year, with core inflation (excluding food and fuel) dropping too.
Even wholesale prices are falling, hinting that things might stay affordable for a while—good news if you're watching your wallet or planning big purchases.