India’s headline CPI inflation eased sharply to +0.25% YoY in October 2025 (from +1.44% in September), marking the lowest reading in the current CPI series and reflecting broad-based declines following a GST reduction.

• Food inflation (CFPI) fell to -5.02% YoY (from -2.33%), the lowest in the series, driven by lower prices in oils and fats, vegetables, fruits, eggs, cereals, footwear, and transport & communication.

• Rural headline inflation stood at -0.25% (vs -1.07% in September), while rural food inflation fell to -4.85% (from -2.22%), highlighting continued disinflation across categories.

• Urban headline inflation dropped to +0.88% (from +1.83%), with urban food inflation declining sharply to -5.18% (from -2.47%), reflecting the strongest deflationary pressure since the series began.

• Housing inflation remained stable at +2.96% (vs +2.98%), continuing to post moderate gains.

• Education inflation edged up slightly to +3.49% (from +3.44%), while health inflation eased to +3.86% (from +4.39%), indicating stable trends in core service categories.

• Transport & communication inflation slowed to +0.94% (from +1.82%), while fuel & light inflation held steady at +1.98%.

• The report attributed the overall decline in inflation primarily to the full-month impact of lower GST rates, favorable base effects, and broad easing in consumer goods and services prices.