Retail inflation fell to a record low of 0.25 percent in October following cut in GST rates on nearly 380 items of mass consumption coupled with subdued prices of vegetables, fruits and eggs.
October Consumer Price Index (CPI)-based inflation was lowest in the current series (base year 2012), which captures data since January 2014.
The inflation was 1.44 percent in September and 6.21 percent in October 2024.
According to the data released by the National Statistics Office, the food inflation declined to (-) 5.02 percent in October.
The decline in headline inflation and food inflation during October 2025 is mainly attributed to full month's impact of decline in GST, favourable base effect and to drop in inflation of oils and fats, vegetables, fruits, egg, footwear, cereals and products, transport and communication, NSO said.
The Reserve Bank, which mainly factors in retail inflation in its monetary policy, has been mandated by the government to ensure CPI remains at 4 percent with a margin of 2 percent on the either side.
The reduced rates of Goods and Services Tax (GST) came into effect from September 22. -- PTI