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Sign in to searchIndia’s Retail Inflation Falls to 8-Year Low in September 2025
India’s retail inflation, measured by the Consumer Price Index (CPI), declined to an eight-year low of 1.54% in September 2025, marking the lowest level since June 2017
This represents a sharp fall from 2.07% in August 2025 and 5.49% in September 2024, indicating a sustained cooling of price pressures. According to the National Statistics Office, rural inflation stood at 1.07%, while urban inflation was 2.04%, suggesting broad-based price stability across regions. Inflation in fuel and light also eased to 1.98%, down from 2.43% in August.
The Reserve Bank of India (RBI), which targets CPI inflation at 4% ± 2%, acknowledged that inflation is well within its comfort zone. In its October 2025 MPC meeting, the RBI kept the repo rate unchanged but revised its FY2025-26 inflation projection downward to 2.6% from 3.1%, driven by falling food prices and improved supply conditions. It expects inflation to remain low in FY2
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India's retail inflation drops to 1.54% in September 2025, the lowest in 8 years. Negative food inflation and stable fuel prices drive disinflation as RBI eases policy outlook.
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