India's retail inflation drops to decade-low of 0.25%
12 Nov 2025

India's retail inflation has plunged to a decade-low of 0.25% in October, down from 1.44% in September.

The decline is largely attributed to a sustained fall in food prices, particularly vegetables and cereals.

The new figure also marks the fourth consecutive month that inflation has remained below the RBI's medium-term target of 4%.

The latest retail inflation figure is the lowest level on record since the data series began in 2015, using 2012 prices as the reference point.

Cut in GST may have contributed to decline in inflation
Economic impact

The retail inflation rate has also stayed below the central bank's tolerance ceiling of 6% for seven consecutive months.

Food prices, which make up nearly half of the Consumer Price Index (CPI) basket, fell 5.02% year-on-year in October.

The central government said that the fall in headline and food inflation in October is largely due to the full-month impact of GST cuts, a favorable base effect, and a drop in prices of oils and fats, vegetables, fruits, eggs, etc.

RBI may cut rates next month
Monetary policy

Despite the rapid cooling of inflation, the RBI has kept its benchmark interest rate unchanged at 5.5% since June.

However, it is widely expected to cut rates next month as inflation continues to ease.

The central bank has said that the easing of inflation is likely to continue in FY26 due to GST rate cuts, a favorable outlook on food prices, and improved supply prospects.