Retail inflation hits a historic low of 0.25% in October
ECONOMY – INDICATORS
13 NOVEMBER 2025
- Retail inflation fell to a historic low of 0.25% in October 2025, with the government attributing this fall to the first full month’s impact of GST rate cuts,a favourable base effect, and drop in inflation of several food items such as vegetables and fruits.
- According to the government, this is the lowest rate of inflation measured in the current series of the Consumer Price Index since January 2012.
- According to economists, this decline is however due to a statistical base effect rather than an actual fall in prices.
- That is, because food inflation in the same month of last year was 9.7%, the change in prices this October looks relatively better.
- Inflation in the housing category, too, accelerated to 3% in October 2025 from 2.8% in October 2024.
- The clothing and footwear category was one of the few other than food that saw inflation easing in October, to 1.7% from 2.7% in October last year, likely on account of the GST rate cuts. The pan, tobacco, and other intoxicants category saw inflation quicken to 2.9% in October 2025 from 2.5% in the same month last year.
- The miscellaneous category, which captures all other items not included in the major sub-groups, saw inflation accelerate to 5.7% in October 2025 versus 4.3% in October last year.
