Key Takeaways
- Retail inflation drops to 1.54% in September, lowest since June 2017
- Food inflation plunges to -2.28%, hitting lowest level since December 2018
- Significant month-on-month decline of 53 basis points in overall inflation
India’s retail inflation eased to 1.54% in September, marking the lowest level since June 2017, according to official data from the Ministry of Statistics and Programme Implementation. The decline was primarily driven by sharper disinflation in food and beverages, which fell to 1.4%.
Month-on-Month Comparison
The September retail inflation figure represents a significant decrease of 53 basis points compared to August levels. Food inflation recorded an even steeper decline, falling to -2.28% with a massive 164 basis point drop from the previous month.
This September’s food inflation level is the lowest recorded since December 2018, indicating substantial price moderation across essential commodities.
Official Explanation
The Ministry attributed the decline to multiple factors. “The decline in headline inflation and food inflation in September 2025 is mainly attributed to favourable base effect and decline in inflation of vegetables, oil and fats, fruits, pulses, etc,” the official statement noted.
