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Low inflation doesn't signal demand slowdown: Analysts
Financial Express Lucknow
|July 16, 2025
Retail inflation falling to a over six-year low of 2.1% in June was largely due to the high base of last year, and did not denote a fall in aggregate demand, analysts said.
RETAIL INFLATION FALLING to a over six-year low of 2.1% in June was largely due to the high base of last year, and did not denote a fall in aggregate demand, analysts said.
Consumer Price Index (CPI) based inflation eased in June, primarily driven by disinflation in the food category. The increase in core inflation to 4.4% is also not worrying as it is mainly attributed to double-digit inflation in personal care items, which includes gold, the prices of which remain elevated.
Meanwhile, wholesale price inflation slipped into deflationary territory, contracting by 0.1% in June, largely due to deflation in food as well as fuel and power.
This story is from the July 16, 2025 edition of Financial Express Lucknow.
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