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(16 Sep 2025, 11:38)

We anticipate a further decline in CPI inflation, aided by the GST 2.0 reforms package

Mr. Hemant Jain, President, PHDCCI


Year-on-year CPI inflation for August 2025 stood with RBI’s tolerance limit at 2.07%, despite international policy uncertainties, said Mr. Hemant Jain, President, PHDCCI. The year-on-year inflation rate, based on the All-India Consumer Food Price Index (CFPI), stood at –0.69% (provisional) in August 2025 compared with August 2024, supporting the prevailing low CPI inflation, Mr. Jain noted. He further highlighted that the softening in the prices in August 2025 for cereals and products, pulses & products, as well as moderation in clothing and footwear, housing, and fuel and light, in comparison to July 2025, have collectively helped keep inflation within RBI tolerance level, he said. Looking ahead, we anticipate a further decline in CPI inflation, aided by the GST 2.0 reforms package. The proposed simplified two-tier structure will reduce production costs, translate into lower prices, and, in turn, stimulate consumption, he added.
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