India's retail inflation (CPI) hit a record low of 0.25% in October 2025, the lowest since the current data series began in 2015. Food inflation plunged to -5.02%, continuing negative for the fifth consecutive month. Two main drivers were the full-month impact of GST rationalisation (effective September 22, 2025), which alone contributed an estimated 85 basis point reduction in CPI, and a favourable base effect. Prices of cooking oils, vegetables, fruits, eggs, cereals, and footwear all fell. The RBI had already cut the policy repo rate from 6.5% in January to 5.5% by September 2025, further easing monetary conditions.
India's CPI Inflation at Record Low of 0.25% in October 2025; Food Inflation Turns Deeply Negative
AQuick answer
India's retail inflation (CPI) hit a record low of 0.25% in October 2025, the lowest since the current data series began in 2015. Food inflation plunged to -5.02%, continuing negative for the fifth consecutive month. Two main drivers were the full-month impact of GST rationalisation (effective September 22, 2025), which alone contributed an estimated 85 basis point reduction in CPI, and a favourable base effect. Prices of cooking oils, vegetables, fruits, eggs, cereals, and footwear all fell. The RBI had already cut the policy repo rate from 6.5% in January to 5.5% by September 2025, further easing monetary conditions.
Key facts
- India's CPI inflation hit a record low of 0.25% in October 2025, lowest since the 2015 data series began.
- Food inflation plunged to -5.02%, remaining negative for the fifth consecutive month.
- GST rationalisation effective September 22, 2025 contributed an estimated 85 basis point CPI reduction.
- Prices of cooking oils, vegetables, fruits, eggs, cereals and footwear all declined.
- The RBI had cut the repo rate from 6.5% to 5.5% between January and September 2025.
- A favourable base effect combined with GST reform drove the historic inflation drop.
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By September 2025, to what level had the RBI cut the policy repo rate from 6.5% in January 2025?
Explanation · Correct answer C
The RBI cut the policy repo rate from 6.5% in January 2025 to 5.5% by September 2025, easing monetary conditions.
Source: DD News / Business Today / Business Standard
Frequently asked questions
What was India's CPI inflation in October 2025 and why was it historically significant?
India's CPI inflation fell to a record low of 0.25% in October 2025, the lowest since the current data series began in 2015. This was driven by negative food inflation and the impact of GST rationalisation effective September 22, 2025.
What was the food inflation figure in October 2025 and for how many consecutive months had it been negative?
Food inflation plunged to -5.02% in October 2025, remaining negative for the fifth consecutive month. Prices of vegetables, fruits, cooking oils, eggs, cereals, and footwear all declined during this period.
How did GST rationalisation contribute to the record-low CPI in October 2025?
The GST rationalisation, effective September 22, 2025, had a visible impact across sectors. Combined with a favourable base effect, this contributed to the historic fall in retail inflation.
What changes did the RBI make to the repo rate between January and September 2025?
The Reserve Bank of India cut the repo rate from 6.5% to 5.5% between January and September 2025, reflecting a monetary easing stance that contributed to lower inflation and increased economic liquidity.
What is CPI and how is it used to measure inflation in India?
CPI stands for Consumer Price Index, which measures retail inflation by tracking the change in prices of a basket of goods and services consumed by households. India uses CPI as the primary headline inflation measure, with the current data series starting in 2015.
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