Retail Inflation Slips to 1.55% in July — An 8-Year Low
New Delhi I Economy India: India’s retail inflation, measured by the Consumer Price Index (CPI), fell sharply to 1.55% in July 2025, marking the lowest level in more than 8 years. This significant drop was driven primarily by a decline in food prices, offering relief to households across the country.
Inflation Falls to Historic Low
Retail inflation in July touched levels not seen since June 2017, when CPI inflation was recorded at 1.54%. This decline was sharper than expected by most economists.
Food Prices Lead the Decline
The largest contributor to the fall was the food and beverages category, which carries a major weight in the CPI basket. Prices of vegetables, pulses, cereals, and edible oils saw significant moderation.
Consumer Relief
The drop in inflation means consumers are paying less for their daily essentials. This could improve household purchasing power and indirectly boost demand for other goods and services.
Urban vs Rural Inflation
Urban inflation remained slightly higher than rural inflation, mainly because urban households spend more on services like transport and housing, which saw smaller price cuts.
Historical Context
The current inflation level is notable because in 2017, the fall was due to a bumper crop season. This time, it is a mix of better supply chain efficiency, government measures to curb prices, and a moderation in global commodity costs.
Government Measures
Over the past few months, the government has taken steps such as reducing import duties on edible oils, releasing buffer stocks of pulses, and imposing stock limits to control hoarding.
RBI Policy Implications
The sharp decline in CPI inflation could give the Reserve Bank of India (RBI) some room to reassess its monetary policy stance, although experts warn that inflation may rise again if monsoon patterns disrupt supply.
RBI Governor’s Clarification
In a separate statement, RBI Governor Sanjay Malhotra clarified that the RBI does not decide the minimum balance requirement for savings bank accounts. This policy is set by individual banks based on their internal business strategies.
Public Confusion
The clarification was necessary because many account holders believed there was a uniform RBI rule across banks regarding minimum balances, which is not the case.
Impact on Banking Customers
Customers are advised to check the terms and conditions of their bank to avoid charges for non-maintenance of minimum balance, as these rules can vary widely.
Ambani Family Tops Hurun List
Meanwhile, in the corporate world, the Ambani family has topped the 2025 Hurun India Most Valuable Family Businesses list with a staggering valuation of ₹28 lakh crore.
Business Empire Spread
The Ambani business empire spans oil and gas, retail, digital services, telecom, green energy, and financial services, making it one of the most diversified in the country.
Comparison with Other Families
The valuation gap between the Ambanis and the second-ranked family on the Hurun list remains significant, showing the dominance of Reliance Industries in India’s economy.
Market Performance Boost
Reliance Industries’ strong performance in both traditional and new-age sectors contributed to this valuation, with particular growth in Jio Platforms and Reliance Retail.
Investor Confidence
The Hurun ranking reinforces investor confidence in family-led conglomerates, especially those that have diversified into high-growth sectors.
Global Recognition
The Ambani family’s business achievements have also placed them among the top family-owned enterprises globally, further strengthening India’s corporate image.
Economic Impact
Lower inflation, strong corporate growth, and stable monetary policies could help India sustain its position as one of the fastest-growing major economies in the world.
Stock Market Sentiment
The drop in inflation has been welcomed by the stock market, with analysts expecting possible interest rate cuts if low inflation persists for multiple months.
Consumer Confidence Boost
Cheaper food prices and corporate success stories like the Ambanis’ can boost consumer confidence, leading to higher spending and economic momentum.
Outlook Ahead
Economists caution that while the current inflation trend is positive, global oil prices, monsoon rains, and currency fluctuations will determine whether low inflation can be sustained through the rest of FY 2025–26.
CPI Inflation Trends
| Month & Year | CPI Inflation (%) | Key Driver |
|---|---|---|
| June 2017 | 1.54 | Bumper crop, low food prices |
| July 2024 | 4.85 | Food inflation, fuel prices |
| June 2025 | 2.10 | Moderating food inflation |
| July 2025 | 1.55 | Sharp drop in food prices |
Top 3 Hurun India Family Businesses 2025
| Rank | Family Name | Business Group | Valuation (₹ lakh crore) |
|---|---|---|---|
| 1 | Ambani | Reliance Industries | 28 |
| 2 | Adani | Adani Group | 14.5 |
| 3 | Burman | Dabur India | 9.2 |
(Economy India)
