Annual retail inflation slowed to 1.55% in July as compared to 2.10% in June, and below a Reuters poll of 1.76%. The figure was the lowest since June 2017, according to a government statement, and below the Reserve Bank of India's tolerance band of 2%-6% for the first time since January 2019.

India's retail inflation saw a significant drop in July. It reached a low of 1.55%, the lowest in over eight years. This decline was mainly due to lower food prices. The Reserve Bank of India had earlier cautioned about possible inflation increases.

The WPI inflation for July is also lower than the -0.13 per cent that was recorded in the previous month of June. WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent in May.