India’s Retail Inflation Falls Sharply to 0.25% in October on Lower Food Prices, GST Cuts

According to government data, retail inflation fell to 0.25 percent in October. This is its lowest level in several years. According to data released on Wednesday, this decline in retail inflation was due to a reduction in GST rates and softening vegetable and fruit prices.

Retail inflation based on the Consumer Price Index (CPI) was 1.44 percent in September and 6.21 percent in October 2024. According to data released by the National Statistical Office (NSO), food inflation declined to (-) 5.02 percent in October.

The NSO said the decline in headline inflation and food inflation during October 2025 was primarily driven by the impact of the GST rate cut. This was driven by a favourable base effect and softening prices of oils and fats, vegetables, fruits, eggs, footwear, cereals and produce, and transport and communication, which moderated market inflation.