In October, retail inflation fell to a record low of 0.25 percent, influenced by the GST rate reduction and lower prices for vegetables and fruits, according to government data released on Wednesday. The consumer price index (CPI) indicated that retail inflation was 1.44 percent in September and 6.21 percent in October 2024. The National Statistics Office (NSO) reported that food inflation dropped to (-) 5.02 percent in October. The decrease in both headline and food inflation for October 2025 was primarily due to the full-month impact of the GST rate cut, a favorable base effect, and declines in the prices of oils and fats, vegetables, fruits, eggs, footwear, cereals and products, and transport and communication, as stated by the NSO.
Economists noted that the further easing of CPI inflation in October results from the government’s effective GST reforms, positively affecting the economy. The year-on-year inflation rate based on the All India Consumer Price Index (CPI) for October was 0.25 percent (provisional). Rajeev Juneja, President of PHDCCI, mentioned that the unprecedented low food inflation of -5.02 percent (provisional) significantly contributed to the lowest headline inflation in the current CPI series.