Retail inflation at record low! October CPI inflation drops to 0.25%; well below RBI’s target range
October retail inflation FY 2025-26: The Consumer Price Index (CPI) inflation for the month of October dropped to a 10-year low of 0.25% according to government data. This is a reduction of 119 basis points as noted in the headline inflation from September 2025 to October 2025. This marks the lowest year-on-year inflation recorded in the present CPI series.The All India Consumer Food Price Index (CFPI) saw a year-on-year inflation rate of -5.02% (Provisional) for October 2025 versus October 2024. The rural and urban rates stand at -4.85% and -5.18%, respectively. Food inflation experienced a decrease of 269 basis points in October 2025 compared to September 2025, reaching its lowest point in the current CPI series.The substantial reduction in both headline and food inflation during October 2025 can be attributed to several factors: the complete monthly impact of GST reduction, beneficial base effect, and decreased inflation rates across various categories including Oils and fats, Vegetables, Fruits, Egg, Footwear, Cereals and products, Transport and Communication.The rural sector witnessed decreases in both headline and food inflation during October 2025. The headline inflation registered at -0.25% (Provisional) in October 2025, compared to -1.07% in September 2025. The rural sector’s CFPI-based food inflation was recorded at -4.85% (Provisional) in October 2025, down from -2.22% in September 2025.The headline inflation in urban areas declined from 1.83% in September 2025 to 0.88% (Provisional) in October 2025. Similarly, food inflation showed a reduction from -2.47% in September 2025 to -5.18% (Provisional) in October 2025.The urban sector housing inflation rate stood at 2.96% (Provisional) in October 2025, compared to 2.98% in September 2025. This index is exclusively calculated for urban areas.The combined rural and urban education inflation rate stood at 3.49% (Provisional) in October 2025, showing a slight increase from 3.44% in September 2025.The combined health inflation rate for rural and urban sectors decreased to 3.86% (Provisional) in October 2025 from 4.39% in September 2025.
