Inflation hits record low in October, but household costs tell a mixed story

Inflation basket tells a different story

India’s inflation cooled to a record low of 0.25 percent in October, but the relief wasn’t uniform at the checkout counter. Households faced a split screen: grocery baskets got lighter on some fronts, yet everyday services and personal care costs continued to climb.

Food: A tale of two baskets

Inside the food basket, contrasts ran deep. Winter greens and vegetables rose through the month—palak and other leafy vegetables were up around 2 percent, while peas, a seasonal favourite, jumped over 12 percent.

Meat and eggs edged higher too, with chicken up just over 1 percent and eggs about 0.5 percent.

Fruits told a mixed story: pineapple gained 6.1 percent, but apple prices fell nearly 10 percent, offering some respite in fruit-heavy markets.

Edible oils provided the strongest cushion. Mustard, groundnut and refined oils all slipped marginally, continuing a year-long easing trend, while ghee dipped slightly. Sugar prices outside the PDS rose only fractionally, and tea and coffee stayed stable.

Personal care and services remain sticky

Away from food, prices in personal care and grooming refused to budge.

Hair oil and shampoo were up 0.3 percent, barber and beautician services cost 0.3 percent more, and cosmetics and perfumes crept higher too.

It’s a small part of the consumption basket, but these steady gains help explain why the “feel” of inflation didn’t match the headline low.

Durables, vehicles and electronics turn cheaper

For big-ticket buyers, October brought good news.

Prices of motor cars fell 6.9 percent and two-wheelers 4.5 percent, following GST rate cuts.

Televisions, washing machines and refrigerators also became cheaper, while electronics and mobile handsets dipped slightly amid festive discounts and lower input costs.

The trend reversed for precious metals: gold surged 12.5 percent and silver 21.7 percent, pushing up jewellery costs.

Rents rise, utilities steady

On the housing front, rents climbed 0.9 percent month-on-month, with a visible increase in maintenance charges, while electricity and LPG stayed flat.

Daily services—from domestic help to small repairs—saw modest, consistent price rises.

October’s inflation data captures an economy in broad disinflation, led by easing staples and edible oils, but with persistent price pressure in vegetables, personal care, and housing.

While headline inflation hit a historic low, the household experience remains uneven, showing that disinflation doesn’t always feel like relief.