In October, Inflation fell to a record low of 0.25%
In October 2025, the Consumer Price Index (CPI) based inflation is 0.25 percent, which is 119 basis points lower than in October last year. Due to the fall in the prices of food items, inflation has declined significantly, and in October it reached the lowest level in almost a decade. In
In September 2025, the retail inflation rate was recorded at 1.54 percent. October was the fourth consecutive month when inflation, i.e., inflation, remained below the Reserve Bank of India’s (RBI) medium-term target of 4% and for the last 7 consecutive months, it remained below the central bank’s tolerance limit of 6%.
Prices of food items, which constitute almost half of the Consumer Price Index (CPI), declined to -5.02% compared to -2.28% in September. Food inflation in October 2025 is the lowest in the current CPI series.
The government said in a press release that the decline in core inflation and food inflation during October was mainly due to a reduction in GST, a favourable base effect, and fats, vegetables, fruits, eggs, footwear, cereals and products, transport and communication, etc.
Vegetable prices have fallen by double digits for six consecutive months on an annual basis, keeping food inflation, which accounts for nearly half of the CPI, under control. Although inflation has remained below the RBI’s 4% target since February, economists say this masks a shift in household spending patterns. The Household Consumption Expenditure Survey for 2023-24 showed that the share of food in the average Indian household’s budget has fallen.
