Retail inflation slipped to an eight-year low of 1.55 per cent in July mainly due to subdued prices of food items, including vegetables and cereals, according to government data released on Tuesday.

The consumer price index (CPI) based inflation was 2.1 per cent in June and 3.6 per cent in July 2024.

The July 2025 inflation is the lowest since June 2017 when it was at 1.46 per cent.

"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," the National Statistics Office (NSO) said.

The year-on-year food inflation rate in July was (-) 1.76 per cent.

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