India’s CPI inflation rose to 2.07% YoY in August 2025 (vs 1.61% in July), marking the first pickup in inflation since October 2024, while food inflation (CFPI) remained negative at -0.69% YoY but improved from -1.76% in July.

• Rural CPI increased to 1.69% YoY (vs 1.18% in July), while urban CPI climbed to 2.47% YoY (vs 2.10%).

• Rural food inflation was -0.70% YoY (vs -1.74% in July) and urban food inflation was -0.58% YoY (vs -1.90%).

• On a MoM basis, CPI rose +0.46% in August, with rural prices up +0.56% and urban +0.36%. CFPI increased +0.65% MoM, led by rural +0.81% and urban +0.44%.

• Housing inflation eased slightly to 3.09% YoY (vs 3.17% in July).

• Education inflation slowed to 3.60% YoY (vs 4.11% in July), while health inflation eased to 4.40% YoY (vs 4.57%).

• Transport & communication inflation moderated to 1.94% YoY (vs 2.12%), and fuel & light inflation slowed to 2.43% YoY (vs 2.67%).

• The uptick in headline CPI was mainly driven by higher inflation in vegetables, meat & fish, oils & fats, eggs, and personal care items.