India’s retail inflation rose to 2.07% in August, up from 1.61% in July, driven largely by increases in food items like vegetables, meat, fish, oil and fats, and eggs. Core inflation remains around 4.1%. Economists believe inflation will stay within RBI’s acceptable range for now, especially with tax cuts and GST rate reductions helping curb price pressures through the rest of 2025. Risks include weather-related supply shocks.