Is India's inflation actually falling
Source: Ministry of Statistics · Last updated July 2026
Current CPI (FY26 avg)
1.7%
RBI target
4%
India's retail inflation (CPI) declined significantly to an average of 1.7% in FY 2025-26, down from 4.6% in the previous fiscal year. This is the lowest average reading in the current CPI series.
What is CPI inflation?
CPI (Consumer Price Index) measures the average change in prices paid by consumers for goods and services. When CPI rises, your money buys less than it used to. When it falls, your purchasing power increases.
Why inflation matters to you
- Your money's value: Higher inflation means your savings buy less
- EMI payments: Banks may raise rates to combat inflation
- Wages: Your salary may not keep up with rising prices
What's next
The RBI aims for 4% inflation. With inflation currently at 1.7%, well below the target, the RBI may consider cutting interest rates.
Source
Ministry of Statistics and Programme Implementation, CPI data. Figures reflect the most recent monthly data as of July 2026.