In numbers: Gold, silver, mobile bills, airfare to pinch Indian wallets

Prices of non-food items squeeze Indian wallets; unlikely to decrease significantly in the coming months

Aug 04, 2025, 12:35 IST1 min

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India&rsquos non-food inflation climbed to a 23-month high of 4.3 percent in June despite a dip in retail inflation in the same month. Inflation for non-food items and services was 4.1 percent in May. Experts say prices of non-food items are likely to stay elevated in the coming months as most segments continue to pass on higher input costs to the consumers. &ldquoThe rate may not cross 4

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Non food inflation exceeded retail inflation, for the first time since June 2023, in March this year and has continued upwards since. Meanwhile, food prices slid into deflation for the first time since January 2019. Core inflation, which excludes volatile food and fuel components, has remained over 4% since January this year.

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Inflation in precious metals and ornaments remained high. Beer prices also showed a significant spike, which is notable for a commodity whose inflation has largely remained under 4% since April 2023. In comparison, railway fare, family planning devices and household appliances saw a considerable drop in prices in June. "FMCG companies have started increasing prices after holding on for th

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While prices of fuel and light have largely remained lower than headline inflation in the past year, it marginally exceeded retail inflation in June. Experts believe that since the Q1 inflation figures are close to the RBI&rsquos forecast (revised to 2.9% for Q1FY25), a further downward revision of inflation for FY26 is unlikely. &ldquoEven if there is a change made this time, it may not

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While a majority of the households do not expect prices of non food items to ease in the coming months, experts believe that overall inflation is expected to remain low in July due to the base effect before rising sequentially.

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