Inflation Dips to New Lows Amid Subdued Food Prices

Retail inflation decreased to 1.54% in September from 2.07% the previous month primarily due to lower food prices. The Consumer Price Index (CPI) compares this to 5.49% inflation in September 2024. The Reserve Bank has revised its inflation projection for 2025-26 to 2.6%, citing favorable conditions.

Retail inflation in the country dipped to 1.54% in September from 2.07% in August, as per government data released on Monday. This decline is attributed largely to subdued prices in essential food items like vegetables and pulses.

In a comparison that highlights the changing economic scenario, the Consumer Price Index (CPI) recorded an inflation rate of 5.49% in September 2024. The National Statistics Office (NSO) attributes this year's decline to a favorable base effect and drops in prices across various categories, including oil, fruits, and cereals.

Moreover, in its bi-monthly monetary policy announcement, the Reserve Bank adjusted its inflation projection for the financial year 2025-26 to 2.6%, down from an earlier estimate of 3.1%. The RBI credits robust monsoon conditions and strong agricultural production as factors expected to stabilize food prices further in the coming months.