Page 14 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Digital transactions surged 9x in volume (FY18–FY24), with UPI processing 172 billion
transactions in 2024 alone.

• Inflation was reduced from an average of 8.2% (2004–14) to around 5% (2015–25) through
targeted fiscal and monetary policies.

• Retail inflation fell to 4.6% in 2024–25, the lowest since 2018–19.

Inflation in India

• Headline inflation-: Year-on-year inflation rate based on All India Consumer Price Index (CPI) for
the month of June, 2025 over June, 2024 is 2.10% (Provisional). There is decline of 72 basis points
in headline inflation of June, 2025 in comparison to May, 2025. It is the lowest year-on-year
inflation after January, 2019.

Figure 7: Year on year inflation rate based on CPI (%)

Source- NSO

• Food Inflation: Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for
the month of June, 2025 over June, 2024 is -1.06% (Provisional). Corresponding inflation rates for
rural and urban are -0.92% and -1.22%, respectively. A sharp decline of 205 basis points is
observed in food inflation in June, 2025 in comparison to May, 2025. The food inflation in June,
2025 is the lowest after January, 2019.

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