India’s retail inflation cools to record low of 0.25% in October on GST cuts, food price slump

India’s retail inflation eased sharply to 0.25% in October, its lowest level since the introduction of the current Consumer Price Index (CPI) series, government data showed on Wednesday.

The year-on-year inflation rate, measured by the All-India Consumer Price Index (CPI), dropped by 119 basis points from September’s level, when it stood at 1.44%, according to data released by the Ministry of Statistics and Programme Implementation.

Food inflation, which accounts for nearly half of the CPI basket, fell to -5.02% in October, from -2.33% in the previous month, driven by lower prices of oils and fats, vegetables, fruits, eggs, and cereals.

"The decline in headline inflation and food inflation during the month of October, 2025 is mainly attributed to full month’s impact of decline in GST, favorable base effect and to drop in inflation of Oils and fats, Vegetables, Fruits, Egg, Footwear, Cereals and products, Transport and Communication etc.," the Ministry of Statistics and Programme Implementation said in a release.

In rural areas, headline inflation stood at –0.25% in October compared with –1.07% in September.

Urban inflation also saw a sharp moderation, dropping to 0.88% in October from 1.83% in September, while urban food inflation fell to -5.18% from -2.47% previously.

Education inflation edged up marginally to 3.49% from 3.44%, while health inflation softened to 3.86% from 4.39%.

Transport and communication inflation dropped sharply to 0.94% from 1.82% in September, while fuel and light inflation held steady at 1.98%.