India's consumer inflation rate slowed for the ninth consecutive month in July 2025, reaching an eight-year low of 1.55%, the lowest since June 2017. This decline was primarily driven by a sharp fall in food and beverage prices, which turned negative, despite a surge in edible oil prices linked to the Russia-Ukraine conflict. The consumer price index (CPI) inflation rate remains well below the Reserve Bank of India's 4% target, providing the central bank with potential room to ease interest rates. However, concerns persist about the impact of low inflation on rural incomes. Additionally, India's wholesale price inflation (WPI) dropped to -0.58% year-on-year in July, marking the second consecutive month of deflation and indicating broader price corrections across sectors, including food and fuel. The WPI decline was steeper than expected, with the previous month's rate at -0.13% and market estimates at -0.48%. The central bank forecasts that inflation may rise modestly in the coming months despite the current easing.