Page 14 - Policy Economic Report - September 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

An increase in headline inflation and food inflation during the month of August, 2025 is mainly attributed
to increase in inflation of Vegetables, Meat and fish, Oil and fats, Personal care and affects, Egg etc.

• Rural Inflation: An increase in headline and food inflation in rural sector observed in August, 2025.
The headline inflation is 1.69% (Provisional) in August, 2025 while the same was 1.18% in July,
2025. The CFPI based food inflation in rural sector is observed as -0.70% (Provisional) in August,
2025 in comparison to -1.74% in July, 2025.

• Urban Inflation: An increase from 2.10% in July, 2025 to 2.47% (Provisional) in August, 2025 is
observed in headline inflation of urban sector. Increase is also observed in food inflation from -
1.90% in July, 2025 to -0.58% (Provisional) in August, 2025.

• Housing Inflation: Year-on-year Housing inflation rate for the month of August, 2025 is 3.09%
(Provisional). Corresponding inflation rate for the month of July, 2025 was 3.17%. The housing
index is compiled for urban sector only.

• Fuel & light: Year-on-year Fuel & light inflation rate for the month of August, 2025 is 2.43%
(Provisional). Corresponding inflation rate for the month of July, 2025 was 2.67%. It is combined
inflation rate for both rural and urban sector.

• Top five major states with high Year on Year inflation for the month of August, 2025 are shown
in the graph below.

Figure 9: Top five major states with high Year on Year inflation for the month of July, 2025

Source- NSO Page | 13

September 2025