The rate was significantly lower than the 9.6 per cent recorded in August 2024.

On a month-on-month basis, CPI inflation declined by 0.6 per cent in August, following a sharp 2.9 per cent rise in July. In contrast, CPI had increased by 0.4 per cent in the same month last year.

Urban inflation rose 3.4 per cent year-on-year in August 2025, down from 4.4 per cent a month earlier and 11.7 per cent in August 2024. On a monthly basis, it fell 0.7 per cent compared to a 3.4 per cent increase in July and a 0.3 per cent rise in the same month last year.

Rural inflation stood at 2.4 per cent year-on-year in August 2025, easing from 3.5 per cent in July and 6.7 per cent a year earlier. On a monthly basis, rural inflation fell 0.5 per cent compared to a 2.2 per cent rise in July and a 0.6 per cent increase in August 2024.

The Sensitive Price Indicator (SPI) inflation climbed 2.6 per cent year-on-year in August, reversing a 0.9 per cent decline a month earlier. It had surged 10.8 per cent in August 2024. On a monthly basis, SPI rose 3.2 per cent compared to 3.1 per cent in July and a 0.3 per cent drop in August last year.

Wholesale Price Index (WPI) inflation fell 1.0 per cent year-on-year in August 2025, after a 0.5 per cent decline in July. In comparison, WPI had increased 6.3 per cent in August 2024. On a monthly basis, WPI slipped 0.2 per cent, against a 1.2 per cent rise in July and a 0.3 per cent increase in August 2024.

Core inflation, measured by non-food, non-energy items, also registered a slowdown. In urban areas, it rose 6.9 per cent year-on-year in August 2025, down slightly from 7.0 per cent in July and 10.2 per cent in August 2024. On a monthly basis, it increased 0.3 per cent, compared to 0.8 per cent in July and 0.4 per cent in August last year.

In rural areas, non-food, non-energy core inflation rose 7.8 per cent year-on-year in August 2025, easing from 8.1 per cent in July and 14.4 per cent in the same month last year. On a monthly basis, it increased 0.2 per cent, compared to 0.7 per cent in July and 0.6 per cent in August 2024.