Retail Inflation Eases to 1.54% in September, Reaching an Eight-Year Low
India's retail inflation, measured by the Consumer Price Index (CPI), dropped to 1.54% in September 2025, the lowest since June 2017. This decline is primarily attributed to falling food and fuel prices. The figure is currently below the Reserve Bank of India’s (RBI) lower comfort bound of 2%. While food inflation is expected to remain benign due to a good monsoon, risks persist from late monsoon withdrawals. Categories like clothing and footwear also saw a slowdown, whereas housing and intoxicants experienced a slight uptick in inflation rates.
Key Points
- Retail inflation fell to 1.54% in September, driven by a contraction in food and beverage prices.
- The current inflation rate is below the RBI's mandated lower comfort limit of 2%.
- Food and beverages saw a contraction of 1.4% in September compared to 8.4% inflation a year ago.
- Economists warn of potential crop damage risks due to heavy rains in certain regions affecting future food prices.
Exam Facts
- CPI is released by the Ministry of Statistics and Programme Implementation (MoSPI).
- The RBI's lower inflation comfort bound is 2%.
- Retail inflation was last lower in June 2017 at 1.46%.
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