MONEY
Inflation paradox: Fuel is pricier, cars get cheaper
Retail inflation data for May and June shows purchase of vehicles became cheaper compared to the same time last year.
But fuel got costlier, with prices being hiked multiple times since May, as the Iran war jacked up global crude oil prices.
Cars and scooters got cheaper post GST rate change in September 2025. For two wheelers and small cars, GST rate was reduced to 18% from 28%.
What got cheaper, what got costlier?
- •WHAT GOT COSTLIER: 1) Food : 5.05% increase over June 2025. [Tomatoes, coconuts, ginger saw high inflation] 2) Restaurant services: 6.91% 3) Alcoholic beverages: 2.67% 4) Clothing: 3.64% 5) Healthcare: 1.42% 6) Housing, Electricity and Gas: 1.99% 7) Jewellery: Silver jewellery prices rose as much as 133%, while gold and diamond prices rose by 37%
- •WHAT GOT CHEAPER? 1) Cars: -6.89% 2) Motor cycles and scooters: -3.49% 3) Some food prices: Prices of potato and peas prices fell year-on-year.
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