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Indian economy: Retail inflation drops to 1.55% in July

India’s annual retail inflation slowed sharply to 1.55% in July 2025, marking the lowest level in nearly 15 years and dropping below the Reserve Bank of India’s target band for the first time since the pandemic. This slowdown is driven primarily by falling prices of food items like vegetables and pulses, though some farmers are feeling the impact. Experts expect inflation to stay modest, with the RBI likely to consider further rate cuts as growth faces challenges amid tariff uncertainties.