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.