India's Inflation Drops to Record Low: A Closer Look at October 2025's Economic Shift

India's retail inflation nosedived to an unprecedented 0.25% in October 2025, revealing a significant reduction in food prices and GST impact. Experts suggest RBI's possible monetary easing as economic prospects remain cautious. Analysts predict stability, with potential CPI inflation adjustments in the impending policy review.

India witnessed a dramatic drop in retail inflation, reaching an all-time low of 0.25% in October 2025. The Ministry of Statistics and Programme Implementation reported a significant decrease of 119 basis points from September's figures, with food inflation plummeting to a record low of -5.02% due to GST impacts.

The Ministry attributed this notable decline in headline and food inflation to the prolonged effects of the GST reduction, a favorable base impact, and dipping inflation rates in commodities like oils, vegetables, and cereals. Economists are now grappling with whether this benign inflation trajectory will persist, considering the festival season and economic recovery signals.

Despite uncertainties, the Reserve Bank of India remains optimistic, maintaining repo rates at a steady 6.5% before a minor cut earlier in the year. Analysts foresee controlled inflation levels, aiding in economic growth, while predicting potential CPI inflation projections to be reassessed during the upcoming policy review.

(With inputs from agencies.)