Retail inflation in September slips to 1.54%: Govt information

Retail inflation fell to a 99-month low of 1.54% in September 2025 on falling meals and gas costs, official information confirmed. This is as soon as once more under the Reserve Bank of India’s decrease consolation sure of two%. 

Inflation as measured by the Consumer Price Index, launched by the Ministry of Statistics and Programme Implementation, was final decrease in June 2017 when it stood at 1.46%. Inflation had fallen under the RBI’s decrease consolation restrict in July 2025, earlier than rising marginally to 2.1% in August.

Within the index, the meals and drinks grouping noticed a contraction of 1.4% in September 2025, in contrast with a development of 0.05% in August 2025, and eight.4% inflation in September final 12 months.

“Looking forward, meals inflation is more likely to keep benign supported by a beneficial base and good monsoon,” Rajani Sinha, Chief Economist at CareEdge Ratings mentioned. “That mentioned, dangers stay from the late withdrawal of the monsoon and heavy rains in sure areas, which might danger crop harm.” 

In addition, Ms. Sinha mentioned that persistently excessive double-digit inflation in edible oils warrants shut monitoring, given weak sowing traits, import dependence, and elevated world edible oil costs. 

Inflation within the oil and fat class got here in at 18.3% in September 2025, the eleventh consecutive month of double-digit inflation within the sub-grouping.

Inflation within the gas and light-weight class got here in at 1.98% in September 2025, down from 2.3% in August. Save for one month, inflation on this class has been easing since April. 

“The moderation in meals and gas costs has supplied much-needed reduction to households and improved buying energy,” Rajeev Juneja, President of the PHDCCI mentioned. 

Inflation within the clothes and footwear class got here in at 2.28% in September, marginally decrease than the two.33% seen in August 2025 and the two.7% in September final 12 months. This is the fifth consecutive month of slowing inflation on this class.

Inflation within the pan, tobacco and different intoxicants class, nonetheless, quickened in September 2025 — to 2.7% from 2.5% in August. Similarly, the housing sector additionally noticed inflation quickening, to 4% in September from 3.1% within the earlier month.

Economists say that the low inflation figures, with the RBI’s Monetary Policy Committee revising downwards its inflation forecast for the 12 months for the fourth time in a row throughout its most up-to-date financial coverage assembly, raises hopes of a price lower within the subsequent assembly in December.