CPI at 8 year low: Retail inflation drops to 1.54% in Sept on cheaper vegetables, pulses
India’s retail inflation eased sharply to 1.54% in September 2025, marking its lowest level in over eight years, according to the Consumer Price Index (CPI) data released by the Ministry of Statistics & Programme Implementation (MoSPI) on Monday.
The decline represents a 53 basis-point fall from August’s 2.07%, largely attributed to a favorable base effect and cooling prices of key food items including vegetables, oils, fruits, pulses, cereals, and fuel.
Food inflation turns negative for 4th month
The Consumer Food Price Index (CFPI) recorded a deflation of -2.28% in September, the fourth consecutive month of negative food inflation and the lowest since December 2018. Rural food inflation stood at -2.17%, while urban food inflation came in at -2.47%, reflecting a broad-based moderation in food prices.
MoSPI noted that the decline was driven by easing prices of vegetables and edible oils, with pulses and cereals also showing reduced inflationary pressure.
Rural & Urban inflation trend
Rural inflation fell to 1.07% in September from 1.69% in August, while urban inflation dropped to 2.04% from 2.47% during the same period.
Sectoral snapshot
- Housing inflation: 3.98% (up from 3.09% in August)
- Education inflation: 3.44% (slightly down from 3.60%)
- Health inflation: 4.34% (down from 4.40%)
- Transport & communication: 1.82% (down from 1.94%)
- Fuel & light: 1.98% (down from 2.32%)
Statewise picture
Among major states, Kerala (9.94%), Himachal Pradesh (2.98%), Tamil Nadu (3.09%), Uttarakhand (3.77%), and Jammu & Kashmir (4.79%) reported the highest year-on-year inflation. In contrast, Uttar Pradesh (-1.21%), Telangana (-0.29%), and Madhya Pradesh (-0.05%) recorded the lowest or negative inflation rates.
The National Statistical Office (NSO) collected price data from 1,181 villages and 1,114 urban markets across India, achieving response rates of 99.83% in rural areas and 98.56% in urban areas. The next CPI data release, covering October 2025, is scheduled for November 12.
