New Delhi: India's retail inflation, measured by the Consumer Price Index (CPI), has plummeted to an all-time low of 0.25% in October, according to the latest data released by the National Statistics Office (NSO). This figure marks a significant drop from the 1.44% recorded in September 2025 and a substantial decrease compared to the 6.21% reported in October 2024.

The decline in inflation can be attributed to various factors, most notably a decrease in food inflation. The NSO data indicates a considerable easing of prices in the food basket, providing relief to consumers across the country.

In October 2024, retail inflation had soared to 6.21%, breaching the Reserve Bank of India's (RBI) upper tolerance level, primarily due to rising food prices. The RBI is tasked by the government to maintain retail inflation at 4% with a margin of 2% on either side and mainly factors in CPI while arriving at its bi-monthly monetary policy. The food basket inflation had increased to 10.87% in October 2024, compared to 9.24% in September 2024 and 6.61% in October 2023.

The recent NSO data reveals a noteworthy contrast, with the current low inflation rate a welcome development for the Indian economy. The তেlegraph India reported that the CPI-based retail inflation was 1.44 percent in September. Rediff Money also reported the same figures in their report.

The NSO collects price data from 1114 urban markets and 1181 villages through field staff visits. In October 2023, the NSO collected prices from almost all villages and urban markets, with market-wise prices reported at 89.0% for rural areas and 92.0% for urban areas.

In October 2024, significant declines in inflation were observed in subgroups such as 'pulses and products', eggs, 'sugar and confectionery', and spices.

The central government and the RBI will likely analyze this new data to formulate further economic strategies. The sustained moderation in inflation could potentially influence the RBI's monetary policy decisions, possibly leading to adjustments in interest rates to further stimulate economic growth.

This record-low inflation rate is expected to have a positive impact on consumer spending and overall economic activity, signaling a period of price stability and enhanced purchasing power for Indian consumers.