### India's Retail Inflation Plummets to Historic Low of 0.25% in October 2025 India's retail inflation has reached a record low of **0.25%** in October 2025, marking a significant decline from **0.54%** in September. This unprecedented drop is attributed to a combination of factors, including substantial cuts in Goods and Services Tax (GST) rates and a notable decrease in food prices, particularly vegetables and fruits. The current inflation rate is the lowest recorded since the introduction of the Consumer Price Index (CPI) series in 2012, providing a potential boost for consumers and policymakers alike. However, experts caution that this trend may be temporary, and core inflation has seen a slight uptick, indicating underlying price pressures may still exist [https://www.5paisa.com/news/indias-retail-inflation-hits-record-low-of-025-in-october-driven-by-food-price-drops-and-gst][https://www.rediff.com/business/report/retail-inflation-down-to-multi-year-low-of-025-in-oct/20251112.htm]. ### Key Factors Behind the Decline in Retail Inflation 1. **GST Rate Cuts**: The reduction in GST rates has played a crucial role in lowering the overall inflation rate, impacting various sectors positively [https://www.timesnownews.com/business-economy/economy/retail-inflation-cools-to-a-record-low-of-0-25-in-october-article-153139901]. 2. **Food Price Declines**: A significant drop in food prices, especially for vegetables and fruits, has been a major contributor to the inflation decrease. Reports indicate that prices for some essential items have fallen dramatically, with vegetables becoming up to **51%** cheaper [https://www.newindianexpress.com/business/2025/Nov/12/indias-inflation-cools-to-decade-low-as-food-prices-fall-gst-cuts-take-effect][https://www.bhaskarenglish.in/business/news/retail-inflation-may-fall-below-1-per-cent-vegetables-pulses-rice-become-cheaper-by-up-to-51-per-cent-136390874.html]. 3. **Favorable Base Effect**: The comparison to previous months, particularly September's inflation rate, has created a favorable base effect, further contributing to the low inflation figure [https://www.outlookbusiness.com/news/retail-inflation-falls-to-multi-year-low-of-025-in-october-strengthens-hopes-for-rbi-rate-cut-in-december]. 4. **Core Inflation Trends**: While overall inflation has decreased, core inflation has seen a slight increase, suggesting that not all sectors are experiencing the same relief from price pressures [https://www.fortuneindia.com/economy/retail-inflation-hits-record-low-of-025-in-october/128098]. ### Supporting Data and Evidence - **Inflation Rates**: - October 2025: **0.25%** - September 2025: **0.54%** - August 2025: **1.44%** [https://www.businessupturn.com/finance/economy/indias-cpi-inflation-drops-to-record-low-of-0-25-in-october-2025-vs-1-54-in-september]. - **Price Changes for Essential Items**: - Vegetables: **51%** cheaper - Pulses: **29%** cheaper - Rice: **1.2%** cheaper [https://www.bhaskarenglish.in/business/news/retail-inflation-may-fall-below-1-per-cent-vegetables-pulses-rice-become-cheaper-by-up-to-51-per-cent-136390874.html]. ### Conclusion: Implications of Low Retail Inflation The record low retail inflation of **0.25%** in October 2025 presents a unique opportunity for economic growth and consumer relief. 1. **Potential for RBI Rate Cuts**: The low inflation rate strengthens the case for the Reserve Bank of India (RBI) to consider interest rate cuts in December, which could further stimulate economic activity [https://www.outlookbusiness.com/news/retail-inflation-falls-to-multi-year-low-of-025-in-october-strengthens-hopes-for-rbi-rate-cut-in-december]. 2. **Consumer Benefits**: Consumers are likely to benefit from lower prices, enhancing purchasing power and potentially boosting spending in the economy [https://www.dnpindia.in/nation/retail-inflation-drops-to-record-low-of-0-25-in-october-as-food-prices-fall/573690]. 3. **Caution on Sustainability**: Despite the positive outlook, experts warn that the current trend may not be sustainable in the long term, and vigilance is required to monitor core inflation trends [https://www.newindianexpress.com/business/2025/Nov/12/indias-inflation-cools-to-decade-low-as-food-prices-fall-gst-cuts-take-effect]. In summary, while the drop in retail inflation is a welcome development, it is essential to remain cautious about future economic conditions and inflationary pressures.