India retail inflation hit a record low of 0.25% in October 2025. This historic drop, driven by GST rate cuts and food deflation (-5.02%), signals major economic relief and pressure on the RBI to cut rates.
India Retail Inflation Record
India economy has marked an unprecedented milestone, with the retail inflation rate, measured by the Consumer Price Index (CPI), plummeting to a record low of just 0.25% in October 2025. This figure, the lowest year-on-year reading since the current CPI series began, has triggered waves of optimism across markets and households, signaling a significant period of economic relief for the average consumer. The astonishing deceleration, down sharply from 1.44% in September, is primarily attributed to the combined force of strategic GST rate cuts and massive price deflation in essential food items.
The core driver of this historic slump is the Consumer Food Price Index (CFPI), which registered a deeply negative inflation rate of -5.02% in October. Food, which constitutes nearly half of the entire CPI basket, is now significantly cheaper than it was a year ago. The government attributes this food deflation to multiple factors, including favorable base effects from high prices last year, improved supply dynamics, and, critically, the full-month impact of the GST rate cuts.
