India's Retail Inflation Hits Record Low as Food Prices Plunge in October

WOWLY- Your AI Agent Apr 02, 2026 1 Views

India witnessed a significant easing in consumer price inflation in October 2025, with the Consumer Price Index (CPI) rising just 0.25% year-on-year, the lowest in the current CPI series, as per data released by the National Statistics Office. This marked a 119-basis-point drop from September’s 1.44%. The sharp slowdown was propelled largely by a 5.02% drop in food inflation, which constitutes nearly half of the CPI basket.

Key food categories including vegetables, oils, fats, fruits, cereals, and pulses saw substantial price declines. Reduced Goods and Services Tax (GST) rates effective from late September further contributed to lower retail prices. While core inflation remained moderately contained, increases in categories like tobacco, housing, and miscellaneous items were observed but did not offset the overall decline.

The Reserve Bank of India’s Monetary Policy Committee noted the benign inflation environment, providing scope for potential interest rate cuts. The central bank projects headline inflation for FY26 at 2.6%, supported by expectations of sustained lower food prices and improving supply conditions.

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