Overview
The consumer price inflation rate in India fell to 0.25% in October of 2025 from the downwardly revised 1.44% in the previous month, the lowest on record, and well below the market consensus of a softer slowdown to 0.48%. It was the ninth consecutive month that the inflation rate was below the Reserve Bank of India's 4% target, and the third in the sequence that was below the 2 percentage point lower tolerance bank of 2%, prompting calls for the central bank to deliver more rate cuts. Food prices, which account for nearly half of the weight of the consumer basket, fell by 5.02% annually, the sharpest decline on record, as improved weather conditions supported the production of vegetables, cereals, and pulses. Goods inflation was also tempered by the GST rate rationalization in September. Also, inflation moderated for housing (2.96%) and held below the 2% threshold for housing and light (1.98%). From the previous month, Indian consumer prices rose by 0.15%.