India's retail inflation rate dropped to its lowest level in eight years, as falling food prices, especially vegetables and pulses, squeezed the incomes of some farmers.

India’s Consumer Price Index (CPI) dropped to an eight-year low of 1.55 per cent in July, easing from 2.1 per cent in June, according to official data released on Tuesday (12 August). This is the lowest year-on-year inflation rate after June 2017.

India’s retail inflation in July fell to below 2 per cent, the lowest in eight years, according to data released on Tuesday. India’s retail inflation fell to 1.55 per cent in July from 2.1 per cent in June. This is the first time it has gone below the 2 per cent-mark since 2019.