Published: 13 October 2025PIBEconomy
India's Retail Inflation Falls to 8-Year Low of 1.54% in September 2025
India's retail inflation based on the Consumer Price Index dropped to 1.54% in September 2025, a decrease of 53 basis points from August and the lowest since June 2017. Food inflation remained negative for the fourth consecutive month at -2.28%, driven by favourable base effects and declining vegetable, oil & fats, fruits, pulses, cereals, and egg prices.
The sharp moderation took inflation below RBI's 2% lower tolerance limit, strengthening the case for potential rate cuts. The data was released by the Ministry of Statistics and Programme Implementation on October 13, 2025. Rajasthan's CPI stood at approximately 1.8%, slightly above the national average, driven by higher fuel and housing costs in urban centres.
Mains angle
Q: Analyse the implications of India's September 2025 retail inflation falling to an 8-year low of 1.54% for RBI monetary policy and the household economy.
Answer (50 words):
India's retail inflation fell to 1.54% in September 2025, an 8-year low and 53 basis points below August, released by MoSPI on October 13, 2025. Food inflation stayed negative at minus 2.28% for the fourth month. The reading is below RBI's 2% lower tolerance limit, strengthening rate-cut prospects. Rajasthan's combined CPI inflation was 0.31%.
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Practice MCQ from this story
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Linked questionMedium
India's retail inflation in October 2025 fell to a record low of approximately what level?
Explanation · Correct answer BIndia's retail CPI inflation fell to a record low of 0.25% in October 2025, creating conditions for RBI rate cuts.
Frequently asked questions
What was India's Consumer Price Index based retail inflation in September 2025?
India's retail inflation based on the Consumer Price Index dropped to 1.54% in September 2025, the lowest since June 2017.
How much did September retail inflation fall from August?
Retail inflation in September 2025 decreased by 53 basis points from August.
What happened to food inflation in September 2025?
Food inflation remained negative for the fourth consecutive month at -2.28%, driven by favourable base effects and declining vegetable, oil & fats, fruits, pulses, cereals, and egg prices.
Who released the September 2025 inflation data, and what was Rajasthan's CPI?
The data was released by the Ministry of Statistics and Programme Implementation on October 14, 2025. Rajasthan's CPI stood at approximately 1.8%, slightly above the national average, driven by higher fuel and housing costs in urban centres.
