India’s consumer price inflation rose to 2.07 percent in August 2025, according to provisional data released by the Ministry of Statistics and Programme Implementation. This marks an increase of 46 basis points from July, reflecting a modest uptick in overall prices while remaining well within the Reserve Bank of India’s comfort zone.
Despite the rise in headline inflation, food prices continued to remain in negative territory for the third consecutive month, recording a decline of 0.69 percent. Rural food inflation stood at 0.70 percent below last year’s levels, while urban food inflation fell by 0.58 percent. Analysts noted that rising costs of vegetables, meat, fish, oils, fats, eggs, and personal care products contributed to the moderate increase in inflation.
Rural areas saw headline inflation climb from 1.18 percent in July to 1.69 percent in August, while urban areas recorded an increase from 2.10 percent to 2.47 percent. Among other categories, housing, education, health, transport, and fuel experienced moderate price changes, with urban housing inflation at 3.09 percent and health costs rising by 4.40 percent.
State-wise, Kerala recorded the highest year-on-year inflation at 9.04 percent, followed by Jammu and Kashmir at 3.75 percent and Punjab at 3.51 percent. Key food items showed mixed trends, with tomatoes rising sharply by 16.92 percent, while staples such as onions and potatoes continued to see price declines.
The CPI data is based on extensive collection from over 1,100 villages and 1,100 urban markets, covering nearly all regions across the country. The next report, detailing September inflation, is scheduled to be released on October 13, 2025.
