Retail inflation hits record low of 0.25% in October as food prices ease

India’s headline retail inflation slowed sharply to 0.25 per cent in October 2025, marking the lowest year-on-year increase since the current Consumer Price Index (CPI) series began. The fall was driven by a steep decline in food prices and the full-month impact of the recent Goods and Services Tax (GST) reduction, according to the Ministry of Statistics and Programme Implementation (MoSPI).

Food inflation sees record fall

Food inflation, measured by the Consumer Food Price Index (CFPI), dropped to −5.02 per cent in October from −2.33 per cent in September. The fall was broad-based across categories such as oils and fats, vegetables, fruits, eggs, cereals and pulses. MoSPI said the decline reflected both the effect of lower GST rates and a favourable base from last year.

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Rural food inflation eased to −4.85 per cent, while urban food inflation fell further to −5.18 per cent. The ministry noted that this is the lowest food inflation recorded since the introduction of the 2012-based CPI series.

Headline inflation dips across regions

The combined All-India CPI stood at 197.3 (provisional) in October, marginally higher than 197.0 in September. Rural headline inflation turned slightly negative at −0.25 per cent, while the urban rate moderated to 0.88 per cent from 1.83 per cent a month earlier.

Overall, the general index rose only 0.15 per cent between September and October, underscoring a clear disinflationary trend. Food price deflation and easing non-food components helped offset minor price increases in select categories.

Prices ease across key segments

Inflation in the housing category was steady at 2.96 per cent, while health inflation eased to 3.86 per cent from 4.39 per cent. The education index rose slightly to 3.49 per cent.

In contrast, fuel and light inflation held unchanged at 1.98 per cent, while transport and communication inflation softened to 0.94 per cent from 1.82 per cent. Prices of footwear, oils, and several consumer goods also saw a moderation compared with the previous month.

State-level trends show mixed picture

Inflation trends were uneven across the country, with Kerala registering one of the highest overall rates in October. In contrast, large states such as Uttar Pradesh, Bihar, and Odisha saw prices either edge down or remain almost unchanged from a year earlier. Officials said these variations were shaped mainly by local food prices, seasonal supply factors, and differing spending patterns across regions.

How the data were collected and compiled?

Price data for October were collected from 1,181 villages and 1,114 urban markets across all states and union territories. Coverage reached 100 per cent of villages and 98.29 per cent of urban markets, with market-wise response rates at 88.53 per cent for rural and 92.17 per cent for urban areas.

The ministry emphasised that these figures are provisional and subject to revision once complete validation is done.

The sharp fall in inflation is expected to ease household cost pressures in the near term. However, the ministry noted that the fall is partly the result of temporary influences, including the GST revision and a favourable comparison with last year’s higher base.