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India's Inflation Rises to 2.07%; Rate Cuts Possible

9/14/2025

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Summary

Story summary

India's retail inflation increased to 2.07% in August from 1.61% in July, staying within the central bank's 2%-6% tolerance band.
The Reserve Bank of India may consider interest rate cuts, with a decision expected on October 1.
Core inflation, excluding food and energy, stood at 4.1% in August.
Tax cuts on food and consumer items may help reduce inflation in the coming months.
Economists forecast low inflation for the remainder of 2025, with possible easing in fiscal year 2026.

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Story summary

India's retail inflation increased to 2.07% in August from 1.61% in July, staying within the central bank's 2%-6% tolerance band.
The Reserve Bank of India may consider interest rate cuts, with a decision expected on October 1.
Core inflation, excluding food and energy, stood at 4.1% in August.
Tax cuts on food and consumer items may help reduce inflation in the coming months.
Economists forecast low inflation for the remainder of 2025, with possible easing in fiscal year 2026.