Retail inflation slips to over 8-yr low of 1.54 pc in Sep
GST
Dated:- 13-10-2025
PTI
New Delhi, Oct 13 (PTI) Retail inflation slowed to an over 8-year low of 1.54 per cent in September and slipped below Reserve Bank's comfort zone mainly due to subdued prices of vegetables, fruits and pulses, showed government data released on Monday.
The consumer price index (CPI) based inflation was 2.07 per cent in August and 5.49 per cent in September 2024. The previous low was 1.46 per cent in June 2017.
It is for the second time that retail inflation has slipped below 2 per cent in 2025. The government has mandated the RBI to ensure CPI remains at 4 per cent with a margin of 2 per cent on the either side.
“There is decrease of 53 bas
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Kerala at 9.05 per cent and lowest in Uttar Pradesh (-) 0.61 per cent.
In its October bimonthly monetary policy, the Reserve Bank lowered its inflation projection for 2025-26 to 2.6 per cent from 3.1 per cent estimated in August.
Regarding the inflation outlook for second half of the fiscal, RBI said that healthy progress of the south-west monsoon, higher kharif sowing, adequate reservoir levels and comfortable buffer stock of foodgrains should keep food prices benign.
It said that the recently implemented GST rate rationalisation would lead to a reduction in prices of several items in the CPI basket. Overall, the inflation outcome is likely to be softer than what was projected in the August MPC resolution, primarily on account of th
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f the GST rejig and tariffs,” Nayar said.
Earlier this month, Reserve Bank of India expectedly left its key interest rates unchanged as it waited for greater clarity on the impact of US tariffs as well as playout of earlier rate cuts and recent tax reductions.
Paras Jasrai, Associate Director at India Ratings and Research said the deflationary trend in food prices has persisted into October 2025 (as of October 12, 2025), with prices of key items such as tomatoes, onions, potatoes, and pulses declining in double digits.
“Looking ahead, a favourable base effect (October 2024: 6.2 per cent) is expected to further ease retail inflation in October 2025. Additionally, the impact of GST rate rationalization will provide further support. Howe
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