India’s Retail Inflation Hits 10-Year Low at 0.25% in October, Driven by Falling Food Prices and GST Cuts

India’s retail inflation cooled sharply to 0.25% in October 2025, marking a 10-year low and the weakest year-on-year reading in the current Consumer Price Index (CPI) series, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on November 12. This represents a drop of 119 basis points from 1.44% in September, reflecting easing food prices and the full impact of the recent Goods and Services Tax ( GST)rate cuts.

The Consumer Price Index (CPI) tracks changes in the prices of common consumer goods and services — including food, housing, apparel, transport, healthcare, and education — to gauge overall retail inflation in the economy.

The data from the National Statistics Office (NSO) showed that food inflation, as measured by the Consumer Food Price Index (CFPI), declined steeply to –5.02% in October, down from –2.33% in September, the lowest level in the current CPI series. Rural food inflation stood at –4.85%, while the urban figure was –5.18%.

According to the NSO, the decline in both headline and food inflation was largely due to the complete monthly impact of GST reductions, a favorable base effect, and falling prices in key categories such as oils and fats, vegetables, fruits, eggs, footwear, cereals, and transport & communication.

Also Read: India's CPI Inflation Easing To 0.4-0.6% In October On Softer Commodity Prices: BoB | Republic World

In the urban sector, headline inflation eased to 0.88% in October from 1.83% in September, while housing inflation remained steady at 2.96%. Education inflation inched up slightly to 3.49%, whereas health inflation dropped to 3.86% from 4.39% a month earlier.

Economists suggest that the combination of tax relief, easing supply pressures, and a favorable base has provided temporary respite from price pressures, setting a stable tone for the remainder of FY2025–26. However, they caution that core inflation, excluding food and fuel, still hovers around 3.8%–4%, reflecting underlying price rigidity. With crude oil prices stabilizing near $78 per barrel and the Indian rupee averaging Rs 83.2 per dollar, analysts expect inflation to stay below the RBI’s 4% target band in the near term, offering room for monetary policy support to growth