CPI Edges Up: Food inflation picks up; Housing and Miscellaneous Lead

16 Sep 2025 , 12:25 PM

The most recent CPI inflation (August 2025) was up marginally at 2.07%, a tad higher than the July rate of 1.61%. This is the first increase in CPI inflation in 2025 and is within consensus estimates. Factors contributing to the month include food (0.05%), miscellaneous (5.05%), alcoholic beverages (4.03%), housing (3.09%), clothing and footwear (2.33%), energy and home maintenance services (2.43%), and tobacco(1.25%).

Figure: CPI – A 3-year history

date	YoY (%)
Sep-2024	5.49
Oct-2024	6.21
Nov-2024	5.48
Dec-2024	5.22
Jan-2025	4.26
Feb-2025	3.61
Mar-2025	3.34
Apr-2025	3.16
May-2025	2.82
Jun-2025	2.1
Jul-2025	1.61
01/08/25	2.07

Source: MOSPI

Figure: CPI – Components

date	Category	YoY (%)
Aug-2025	CPI.Tobacco	1.25
Aug-2025	CPI.Apparel	2.33
01/08/25	CPI.Food	0.05
Aug-2025	CPI.Miscellaneous	5.05
Aug-2025	CPI.Energy_Household	2.43
Aug-2025	CPI.Alcohol	4.03
Aug-2025	CPI.Housing	3.09

Source: MOSPI

 

Food Deflation Eases

Consumer Food Price Index Inflation remains in the negative territory and has been a key drag on overall inflation. However, it has inched up to -0.69%, upwards from July’s -1.76%.

Figure: CPI – A 3-year history

date	YoY (%)
Sep-2024	9.24
Oct-2024	10.87
Nov-2024	9.04
Dec-2024	8.39
Jan-2025	5.97
Feb-2025	3.75
Mar-2025	2.69
Apr-2025	1.78
May-2025	0.99
Jun-2025	-1.01
Jul-2025	-1.76
Aug-2025	-0.69

Source: MOSPI

Core CPI Slips below 2% in August 2025 as Services Remain Primary Inflation Drivers.

August 2025 core CPI inflation was running at 1.96%, very slightly lower than July’s 2.03%, which now makes it the 10^th straight month of falls from the peak of 6.2% in October, suggesting a gradual moderation in underlying inflation pressures. The largest **increases in August** are seen in Personal Care (16.61%), followed by Healthcare (4.4%), Transport Equipment (3.53%), Education (3.6%), and Housing(3.09%). This shows that Services and durable goods continue to see some of the highest price increases.

Figure: CPI Core – A 3-year history

date	YoY (%)
Sep-2024	5.52
Oct-2024	6.2
Nov-2024	5.55
Dec-2024	5.33
Jan-2025	4.52
Feb-2025	3.91
Mar-2025	3.65
Apr-2025	3.36
May-2025	3.15
Jun-2025	2.51
Jul-2025	2.03
Aug-2025	1.96

Source: MOSPI

Figure: Core CPI – Components

date	Category	YoY (%)
Aug-2025	Communication Equipment	0.31
Aug-2025	Apparel	2.33
Aug-2025	Communication Services	1.1
Aug-2025	Leisure	2.2
Aug-2025	Household Goods And Services	2.54
Aug-2025	Healthcare	4.4
Aug-2025	Transport Services	2.88
Aug-2025	Education	3.6
Aug-2025	Housing	3.09
Aug-2025	Personal Care	16.61
Aug-2025	Transport Equipment	3.53

Source: MOSPI

 

Supercore CPI falls further.

Supercore excludes housing-related components from Core CPI. Supercore CPI inflation reading fell to 1.92% in August 2025 from 1.98% the previous month, extending its deflationary trend. The top inflation categories within the Supercore CPI in August 2025 were Personal Care (16.61%), Healthcare (4.4%), Education (3.6%), and Transport Equipment (3.53%).

Figure: Supercore CPI – A 3-year history

 

date	YoY (%)
Sep-2024	5.65
Oct-2024	6.35
Nov-2024	5.67
Dec-2024	5.45
Jan-2025	4.59
Feb-2025	3.96
Mar-2025	3.68
Apr-2025	3.38
May-2025	3.15
Jun-2025	2.48
Jul-2025	1.98
Aug-2025	1.92

Source: MOSPI

Figure: Supercore CPI – Components

date	Category	YoY (%)
Aug-2025	Personal Care	16.61
Aug-2025	Education	3.6
Aug-2025	Healthcare	4.4
Aug-2025	Communication Equipment	0.31
Aug-2025	Household Goods And Services	2.54
Aug-2025	Transport Services	2.88
Aug-2025	Leisure	2.2
Aug-2025	Apparel	2.33
Aug-2025	Communication Services	1.1
Aug-2025	Transport Equipment	3.53

Source: MOSPI