India's retail inflation cools to 1.54% in September, lowest since June 2017

India’s retail inflation eased sharply to 1.54% in September 2025, the lowest level since June 2017, led by a continued decline in food prices, government data showed on Monday.

The headline inflation, measured by the Consumer Price Index (CPI), fell 53 basis points from 2.07% in August, according to data released by the Ministry of Statistics and Programme Implementation.

Food inflation remained negative for the fourth consecutive month, coming in at -2.28% in September, compared with -0.64% in August.

"The decline in headline inflation and food inflation during the month of September, 2025 is mainly attributed to favourable base effect and to decline in inflation of vegetables, oil and fats, fruits, pulses and products, cereal and products, egg, fuel and light etc.," the ministry said in a statement.

Inflation in rural areas stood at 1.07% in September, down from 1.69% in August, while urban inflation eased to 2.04% from 2.47% a month earlier.

Among key categories, housing inflation rose to 3.98 per cent in September from 3.09% in August, while education inflation moderated slightly to 3.44% from 3.60%. Health inflation remained steady at 4.34%, compared with 4.40% in August.

Inflation in transport and communication moderated to 1.82% in September from 1.94% the previous month, and fuel and light inflation eased to 1.98% from 2.32%.