India’s CPI Inflation Cools to 1.54% in September, Lowest Since June 2017

New Delhi, October 13, 2025 (Monday) – There was further easing in the country’s retail inflation as it dropped to 1.54%, the lowest level since June 2017. This was after a steep reduction in the prices of food and a favourable base impact. This is the fourth consecutive month where food inflation has gone down. This reinforces expectations of continued price stability across different critical consumption categories.

Headline and Food Inflation Trends

The Consumer Food Price Index (CFPI) registered a notable deflation of -2.28%, compared to -0.64% in August, its lowest since December 2018. Rural inflation stood at 1.07%, while urban inflation was higher at 2.04%. The drop in inflation was primarily driven by falling prices of vegetables, edible oils, fruits, pulses, cereals, eggs, and fuel, as per the Ministry of Statistics and Program Implementation (MoSPI).

Rural and Urban Trends

There was a reduction in inflation rates across both rural and urban sectors, where it dropped to 1.07% (in the rural region) and 2.04% in the urban area. Both categories saw a deflation in food prices.

Sectoral Highlights

In September 2025, inflation trends varied across sectors. The highest increase was observed in the Miscellaneous category at 5.35%, followed by Health (4.34%), Housing (3.98%), and Education (3.44%). Fuel & Light and Transport & Communication recorded relatively moderate inflation at 1.98% and 1.82%, respectively. Despite the broader decline in headline inflation, healthcare and housing costs remained resilient, indicating continued price pressures in essential services. The education segment also sustained steady inflation, reflecting consistent demand even amid overall disinflation in key commodities.

State-Wise Inflation Snapshot

Some of the states with the highest inflation include Kerala, Jammu and Kashmir, and Punjab. The states with the lowest inflation rates include (deflationary trends) include Assam (-0.56%), Uttar Pradesh (-0.61%) and Bihar (-0.51%).

Key Commodities

There was a sharp decline in prices noted in vegetables (-21.40%), pulses (-15.30%), and onions (-49.90%). In contrast, gold (46.9%), silver (41.8%), and personal care products (19.4%) saw significant price increases.

About the CPI

The Consumer Price Index (CPI) measures changes in retail prices for goods and services consumed by households. Data is compiled by the National Statistical Office (NSO) through field visits across 1,181 villages and 1,114 urban markets. The next release, covering October 2025, is scheduled for November 12, 2025.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2178447

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