India’s retail inflation falls to record low of 0.25% in October amid sharp drop in food prices
In late September, the government cut GST rates on hundreds of widely used products, including dairy items, personal care goods, and household essentials
PTC Web Desk: India’s retail inflation eased sharply to a historic low of 0.25% in October 2025, according to official data released on Wednesday. The fall was primarily driven by a significant reduction in food prices and lower Goods and Services Tax (GST) on essential consumer goods.
This latest Consumer Price Index (CPI) reading marks the lowest inflation level since the current CPI series began in 2015, using 2012 as the base year. Inflation for September was also revised down to 1.44%, reinforcing the steady downward trend in recent months.
“The decline in overall and food inflation during October 2025 reflects the full-month impact of the GST reduction,” the government said in a statement.
In late September, the government cut GST rates on hundreds of widely used products, including dairy items, personal care goods, and household essentials, to stimulate domestic consumption amid rising global trade tensions triggered by the US imposing 50% punitive tariffs.
Food inflation registered a sharp year-on-year decline of 5.02% in October, compared to a 2.33% fall in September. Vegetable prices saw the steepest drop, tumbling 27.57%, after falling 21.38% a month earlier.
Economists say the sharp moderation in inflation could ease the burden on household budgets and give policymakers more flexibility to support consumption-led growth. However, experts caution that global price volatility and festive season demand may test the sustainability of this disinflationary trend in the coming months.