Published: 20 October 2025PIBEconomy
India's CPI Inflation Falls to Historic Low of 0.25% in October 2025
India's headline CPI inflation fell to a historic low of 0.25% year-on-year in October 2025, a decrease of 119 basis points from September 2025 — the lowest in the current CPI series. Food inflation turned sharply negative at -5.02%, driven by ample supplies of vegetables, cereals, and pulses, along with GST rationalisation that shaved about 85 basis points.
The corresponding food inflation rates for rural and urban areas were -4.85% and -5.18% respectively. The sharp fall raises expectations of an RBI rate cut in the upcoming December monetary policy review. Rajasthan's combined CPI inflation was -0.87%, below the national combined rate of 0.25%, while food deflation benefited consumers across the state.
Mains angle
Q: What are the monetary-policy implications of India's CPI inflation falling to a historic 0.25% in October 2025?
Answer (50 words):
India's headline CPI inflation hit a historic 0.25% year-on-year in October 2025, a 119-basis-point drop from September and the lowest in the series. Food inflation turned to -5.02% (rural -4.85%, urban -5.18%), aided by GST rationalisation shaving 85 basis points. The print strengthens expectations of an RBI rate cut in December.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
What is the estimated direct consumption boost from GST 2.0 reforms according to SBI Research?
Explanation · Correct answer CSBI Research estimated ₹70,000 crore direct boost with ₹1.98 lakh crore total via multiplier effect.
Frequently asked questions
What is India's CPI inflation figure for October 2025?
India's **CPI (Consumer Price Index) inflation fell to a historic low of 0.25%** in October 2025, driven by sharp declines in food prices — particularly vegetables — and softening fuel costs. This is the lowest CPI reading in decades.
Why did India's inflation fall to 0.25% in October 2025?
The **0.25% CPI inflation** was driven by a **significant fall in vegetable prices** (especially tomatoes, onions, potatoes) due to good harvests, lower global crude oil prices reducing fuel costs, and easing of core inflation pressures.
What is the significance of CPI inflation at 0.25% for India's monetary policy?
With CPI at just **0.25%** — well below the RBI's 4% target — the **RBI has significant room to cut interest rates** to stimulate economic growth. This creates conditions for monetary easing to support credit growth and investment.
What is CPI inflation and how is it measured in India?
**CPI (Consumer Price Index) inflation** measures the change in price of a basket of goods and services consumed by households. In India, it is measured monthly by the **Ministry of Statistics and Programme Implementation (MoSPI)** based on prices across rural and urban areas.
How does 0.25% CPI inflation in October 2025 compare to India's inflation history?
**0.25% CPI inflation** represents a **historic low** for India, far below the average of 4-6% recorded over the past decade. Such deflation-adjacent levels are extremely rare and reflect exceptional conditions in food and fuel markets in October 2025.
