CPI cools down to 0.25% in October on GST rate cuts, lower food prices

India's retail inflation, as measured by the Consumer Price Index (CPI), cooled down to 0.25 per cent in the month of October 2025, as compared to a revised figure of 1.44 per cent in September 2025 (previously it was estimated at 1.54 per cent) and 6.21 per cent in October 2024. The decline in headline inflation and food inflation during October 2025 was mainly attributed to the whole month's impact of GST rate cut, favorable base effect, and a drop in inflation of oils and fats, vegetables, fruits, egg, footwear, cereals and products, transport and communication. Retail inflation was the lowest on record in the current data series which began in 2015 and uses 2012 price levels as a reference point. The October inflation remained well below the Reserve Bank of India’s (RBI) medium-term target of 4 per cent. Besides, the declining trend in food prices continued in October as food inflation fell deeper in the negative zone at (-) 5.02 per cent from (-) 2.28 per cent in September. Food inflation remained in negative for the fifth consecutive month.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in October 2025 stood at (-) 0.25 per cent over 1.07 per cent in September 2025. The Urban CPI (General) stood at 0.88 per cent in October as against 1.83 per cent in September. The index value for Rural, Urban and Combined CPI (General) stood at 199.0, 195.4 and 197.3 respectively, in October 2025. The price data are collected from selected 1181 villages and 1114 urban Markets covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of October, 2025, NSO collected prices from 100.00 per cent villages and 98.29 per cent urban markets while the market-wise prices reported therein were 88.53 per cent for rural and 92.17 per cent for urban.

Besides, inflation in Food and beverage eased further to (-) 3.72 per cent in October 2025 from (-) 1.37 per cent in September 2025, with prices of vegetable coming at (-) 27.57 per cent in the reporting month from (-) 21.38 per cent in the previous month. Inflation in pulses and products remained in deflationary territory at (-) 16.15 per cent in October over (-) 15.32 per cent in September. Inflation in meat and fish fell to 1.74 per cent from 2.15 per cent in preceding month. Inflation for cereals came down to 0.92 per cent in October from 2.06 per cent in September. The inflation rate for milk and milk products inched down to 2.35 per cent in October from 2.51 per cent in September.

Clothing and footwear inflation for the month of October came down to 1.70 per cent from 2.28 per cent in September, while Housing inflation slightly down at 2.96 per cent in the reporting month from 3.98 per cent in the prior month. Transport and communication inflation fell to 0.94 per cent in October from 1.82 per cent in September and health inflation slowed to 3.86 per cent in October from 4.34 per cent in September. Besides, fuel and light inflation remained stable at 1.98 in October as compared to the previous month. However, education inflation rose to 3.49 per cent in October from 3.44 per cent in September.