Current Affairs - Economy - Discussion

India’s retail inflation, measured by the Consumer Price Index (CPI), stood at 2.07% in August 2025, rising from 1.61% in July. Even with this uptick, the figure remained well below the Reserve Bank of India’s 4% target, offering relief to households and leaving room for accommodative monetary policy. The increase was largely driven by higher prices in categories like vegetables, meat, fish, oil, fats, and personal care, even though food inflation overall remained in deflation for the third straight month. With inflation still comfortably within RBI’s tolerance band, the environment supports economic growth while maintaining price stability.