Page 18 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 11: All India inflation rates for CPI (General) and CFPI

Source- NSO

• The significant decline in headline inflation and food inflation during the month of July, 2025 is
mainly attributed to favourable base effect and to decline in inflation of Pulses and
Products, Transport and communication, Vegetables, Cereal and products, Education, Egg and
Sugar and confectionery.

• Rural Inflation: Significant decline in headline and food inflation in rural sector observed in July,
2025. The headline inflation is 1.18% (Provisional) in July, 2025 while the same was 1.72% in June,
2025. The CFPI based food inflation in rural sector is observed as -1.74% (Provisional) in July, 2025
in comparison to -0.87% in June, 2025.

• Urban Inflation: A decline from 2.56% in June, 2025 to 2.05% (Provisional) in July, 2025 is observed
in headline inflation of urban sector. Decline is also observed in food inflation from -1.17% in June,
2025 to -1.90% (Provisional) in July, 2025.

• Housing Inflation: Year-on-year Housing inflation rate for the month of July, 2025 is 3.17%
(Provisional). Corresponding inflation rate for the month of June, 2025 was 3.18%. The housing
index is compiled for urban sector only.

• Fuel & light: Year-on-year Fuel & light inflation rate for the month of July, 2025 is
2.67% (Provisional). Corresponding inflation rate for the month of June, 2025 was 2.55%. It is
combined inflation rate for both rural and urban sector.

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