Page 17 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Electricity - Electricity generation (weight: 19.85 per cent) increased by 0.5 per cent in July, 2025
over July, 2024. Its cumulative index declined by 1.0 per cent during April to July, 2025-26 over
corresponding period of the previous year.

Inflation in India

• Headline inflation-: Year-on-year inflation rate based on All India Consumer Price Index (CPI) for
the month of July, 2025 over July, 2024 is 1.55% (Provisional). There is decline of 55 basis points
in headline inflation of July, 2025 in comparison to June, 2025. It is the lowest year-on-year
inflation rate after June, 2017.

Figure 10: Year on year inflation rate based on CPI (%)

Source- NSO

• Food Inflation: Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for
the month of July, 2025 over July, 2024 is -1.76% (Provisional). Corresponding inflation rates for
rural and urban are -1.74% and -1.90%, respectively. All India inflation rates for CPI (General) and
CFPI over the last 13 months are shown below. A decline of 75 basis points is observed in food
inflation in July, 2025 in comparison to June, 2025. The food inflation in July, 2025 is the lowest
after January, 2019.

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