India’s retail inflation eased sharply to 1.54% in September 2025, marking its lowest level since June 2017, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The decline reflects a broad fall in food prices across categories, helping cool price pressures for consumers. Here are key highlights from the September inflation data.
Food inflation slips into fourth month of deflation
Food inflation stood at –2.28% in September, indicating a fall in food prices compared with last year. Rural food inflation was recorded at –2.17%, while urban food inflation came in slightly lower at –2.47%. Food inflation has been negative for the fourth consecutive month and the lowest level since December 2018. The drop was mainly due to falling prices of vegetables, oils and fats, fruits, pulses, cereals, eggs, and fuel and light items.
Rural and urban inflation ease
Inflation cooled across both rural and urban areas. Rural headline inflation dropped to 1.07% in September from 1.69% in August, while urban inflation eased to 2.04% from 2.47% in the same period.
The rural segment also saw a sharper decline in food prices compared with last month, underscoring easing cost pressures in villages.
Housing costs inch up; other categories ease
The housing inflation in urban areas rose to 3.98% from 3.09% in August, while education inflation moderated slightly to 3.44% from 3.60%. The health category also recorded a small dip, coming in at 4.34% versus 4.40% in August. Inflation in transport and communication slowed to 1.82%, and in fuel and light to 1.98%, reflecting easing energy prices.
The CPI for October 2025 will be released on 12 November 2025.