Food inflation decreases to -5.02% in October, while CPI inflation falls to 0.25%. The government stated that CPI data shows the effects of the GST cut are evident in every sector.
According to the government release, “the full month’s impact of the 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. is the main cause of the decline in headline inflation and food inflation during October, 2025.”
In the current data series, which started in 2015 and utilizes 2012 price levels as a benchmark, retail inflation was at its lowest point ever. Last year, the CPI inflation was 6.21 in October and 1.4% in September.
Rural inflation was -0.25% as opposed to -1.07% in September. Rural food prices dropped as well, reaching –4.85%. Retail inflation in urban areas decreased from 1.83% in September to 0.88% in October. Urban food inflation fell sharply to -5.18%, a sign of a general decline in the cost of necessities.
Urban housing inflation was 2.96%, down from 2.98% the previous month. Health inflation decreased to 3.86% from 4.39%, while education inflation slightly increased to 3.49% from 3.44% in September.
