India’s retail inflation slumped to just 0.25% in October 2025, in keeping with legit data.
This dramatic dip is basically due to a sharp fall in food prices, which fell by 5.02% 12 months on year, and the full impact of the latest GST rate cuts for essential goods.
The authorities said that the drop additionally displays a favourable base effect and lower expenses for items like oils, vegetables, eggs, and transport.
Economists suggest that this will put growth strain on the Reserve Bank of India (RBI) to lower interest costs in its subsequent policy evaluation, given that inflation is nicely under the imperative financial institution’s tolerance band.
The financial times
Why these topics:
Lower inflation gives Indian purchasers alleviation on ordinary fees.
It is able to provide RBI room to reduce prices; that could increase borrowing and spending.
but a few analysts warn that very low inflation may also hurt manufacturers, specifically within the food area
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