Retail Inflation Drops to Multi-Year Low of 0.25% in October

New Delhi, November 12, 2025: Data from the National Statistics Office (NSO) shows retail inflation plunged to a multi-year low of 0.25% in October 2025, falling well below the RBI’s medium-term target range. For comparison, retail inflation was 1.44% in September and 6.21% a year ago.

The decline was mainly due to a steep fall in food prices. During this month, the CFPI analysed and recorded a deflation of 5.02% dip. This is reflected on account of very cheaper prices on fruits, vegetables, and edible oils.

Key Drivers Behind the Decline

The National Statistics Office attributed the sharp moderation in headline and food inflation to key factors, which were:

• GST Rate Cut: The recent reduction in GST rates impacted prices throughout the month.
• Favourable Base Effect: Lower inflation in the same period last year contributed to the decline in year-on-year inflation figures.
• Decline in Key Item Prices: Prices fell across essential categories, including oils, fats, vegetables, fruits, eggs, cereals, footwear, transport, and communication in prices of key items, which include oils, fats, vegetables, fruits, eggs, footwear, cereals, transport, and communication.

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