India’s headline CPI inflation eased to 1.54% YoY in September 2025 (from 2.07% in August), the lowest since June 2017, reflecting a broad-based decline in food and energy prices. Food inflation (CFPI) dropped further into negative territory at -2.28% YoY (from -0.64% in August), its lowest level since December 2018.

• Rural CPI inflation slowed to 1.07% YoY (from 1.69% in August), while urban CPI eased to 2.04% YoY (from 2.47%).

• Rural food inflation fell to -2.17% YoY (from -0.70%), and urban food inflation declined to -2.47% YoY (from -0.53%), reflecting softer prices in vegetables, cereals, pulses, fruits, eggs, and edible oils.

• On a monthly basis, the combined CPI rose +0.10% MoM, while CFPI decreased -0.49% MoM, led by steeper declines in urban food prices (-0.63% MoM).

• Housing inflation accelerated to 3.98% YoY (from 3.09%), remaining the strongest major category gain.

• Education inflation moderated slightly to 3.44% YoY (from 3.60%), while health inflation eased to 4.34% YoY (from 4.40%).

• Transport & communication inflation slowed to 1.82% YoY (from 1.94%), and fuel & light inflation decreased to 1.98% YoY (from 2.32%).

• The continued moderation in headline and food inflation was mainly attributed to favorable base effects and declines across key consumer categories.