All-India CPI inflation (YoY): 1.54% — the lowest since June 2017.

Food Inflation (CFPI): -2.28%, marking the fourth consecutive month of negative food inflation and the lowest since December 2018.


Sectoral Highlights

Category September 2025 August 2025 Change Remarks
Headline CPI (Combined) 1.54% 2.07% ↓53 bps Lowest since 2017
Rural CPI 1.07% 1.69% ↓62 bps
Urban CPI 2.04% 2.47% ↓43 bps
Food Inflation (CFPI) -2.28% -0.64% ↓164 bps Lowest since Dec 2018
Housing Inflation 3.98% 3.09% ↑89 bps Urban only
Education Inflation 3.44% 3.60% ↓16 bps Combined
Health Inflation 4.34% 4.40% ↓6 bps Combined
Transport & Communication 1.82% 1.94% ↓12 bps Combined
Fuel & Light 1.98% 2.32% ↓34 bps Combined

Key Drivers of Decline

  • Favorable base effect.
  • Decline in prices of vegetables, oils & fats, fruits, pulses, cereals, eggs, and fuel.

State-wise Inflation Snapshot

  • Highest inflation: Kerala (9.05%), Jammu & Kashmir (4.38%), Punjab (3.06%).
  • Negative inflation: Assam (-0.56%), Bihar (-0.51%), Uttar Pradesh (-0.61%), Telangana (-0.15%).

Commodity Insights

Commodity Inflation (YoY) Key Trend
Vegetables -21.38% Sharp fall
Pulses -15.32% Significant decline
Mustard Oil 20.97% Remains elevated
Gold 46.87% Continued surge
Silver 41.75% Major rise
Personal care 19.39% Noticeable increase

Additional Details

  • CPI Index (Combined): 197.2 (vs. 197.0 in Aug 2025).
  • Data collected from 99.83% villages and 98.56% urban markets.
  • Next CPI release: November 12, 2025.

Conclusion

India’s retail inflation fell sharply to 1.54% in September 2025, led by a steep drop in food prices and easing fuel costs. The negative food inflation — driven by vegetables, pulses, and edible oils — underscores a deflationary trend in food items, while gold and silver prices surged strongly amid global demand and market volatility.

TOPICS: CPI