A vendor at the Ghazipur vegetable market, in New Delhi.
Credit: PTI Photo
Bengaluru: Inflation rate based on All India Consumer Price Index (CPI) has cooled to an 8-year low of 1.54 per cent in September. This is the lowest year-on-year inflation since June 2017. In August, it was 2.07 per cent, according to government data.
The CPI-based inflation for September 2024 stood at 5.49 per cent.
"The decline in headline inflation and food inflation during the month of September, 2025 is mainly attributed to favorable base effect and decline in inflation of vegetables, oil and fats, fruits, pulses and products, cereal and products, egg, fuel and light, etc." the National Statistics Office (NSO) said in a statement.
The year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of September, 2025 over September, 2024 is -2.28 per cent (Provisional). Corresponding inflation rates for rural and urban areas are -2.17 per cent and -2.47 per cent, respectively. A decrease of 164 basis points is observed in food inflation in September, 2025 in comparison to August, 2025. The food inflation in September, 2025 is the lowest after December, 2018.
"The soft September CPI inflation continues to point towards the persistence of a benign inflationary environment. While much of the moderation has been led by food prices, the core inflation has surged due to housing. We expect the pass through of GST cut to be more visible in the upcoming October reading, likely pushing the print to sub-1 per cent. Overall, the benign inflation and growth trajectory does provide room for 25-50 bps rate cuts. However, the festive linked surge in retail sales may make it difficult to gauge the underlying sustainable demand in the economy and hence, the timing of easing may become more difficult," said Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.