Historic Low Inflation Figures
India’s retail inflation in October 2025 fell sharply to just 0.25%, marking the lowest level in nearly a decade. This steep decline comes mainly due to reduced food prices and the recent GST rate cuts that lowered the cost of essential goods. Economists are calling it a “turning point” for India’s economy as price stability improves across major sectors.
Reasons Behind the Sharp Decline
Experts say three major reasons contributed to the record low inflation —
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The government’s decision to reduce GST rates on key consumer products, which directly eased market prices.
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The base effect from last year’s higher inflation levels, making the current year’s figures appear more favorable.
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Continuous food deflation, especially in vegetables, pulses, cereals, and edible oils, led to an overall price decline.
Impact on Economy and Monetary Policy
This dramatic fall in inflation gives the Reserve Bank of India (RBI) flexibility to adjust monetary policy. With inflation well below its target range, analysts expect the RBI to consider a rate cut in the coming quarters. However, they also warn that global uncertainties and a possible rebound in food prices could impact this positive trend.
Risks and Future Outlook
While the numbers look promising, core inflation (which excludes food and fuel) remains sticky. Experts believe the current trend could reverse if supply chains face disruptions or if monsoon patterns affect crop yields. The benefit of GST cuts must also reach consumers effectively to sustain this low-inflation phase.
What It Means for Common Citizens
For consumers, this is a welcome relief. Daily-use goods are expected to remain affordable, helping households manage expenses better. Though inflation is at record lows, it doesn’t mean prices are falling — it means the rate of increase has slowed, ensuring stability in purchasing power and a stronger economic outlook for the near future.
