<h1>July 2025 Retail Inflation Hits 1.55%, Lowest in Eight Years, Core Inflation Steady at 4.1%</h1> Retail inflation in July 2025 declined to 1.55%, marking an eight-year low and falling below the Reserve Bank's target range of 4% plus or minus 2%. This decrease was driven by lower food prices and favorable base effects. Despite the low headline inflation, core inflation excluding food and energy remained at 4.1%, indicating stable economic demand. Regional inflation varied, with the highest in one state at 8.89% and the lowest in another at -0.61%. The Reserve Bank maintained the repo rate at 5.5%, having reduced it by 100 basis points since February, but signaled limited scope for further cuts due to anticipated inflation increases in the coming quarters. The data reflects ongoing challenges in balancing inflation control with economic growth.