CPI at 8-year low: Retail inflation fell to 1.54% in September on cheap vegetables and pulses

Retail inflation in India fell sharply to 1.54% in September 2025, hitting its lowest level in more than eight years, according to Consumer Price Index (CPI) data released by the Ministry of Statistics and Program Implementation (MoSPI) on Monday.

This decline represents a decrease of 53 basis points from August’s 2.07%, largely due to a favorable base effect and lower prices of major food items including vegetables, oils, fruits, pulses, grains and fuels.

Food inflation turned negative for the fourth month

The Consumer Food Price Index (CFPI) recorded a contraction of -2.28% in September, the fourth consecutive month of negative food inflation and the lowest since December 2018. Rural food inflation was -2.17%, while urban food inflation was -2.47%, reflecting a broad-based moderation in food prices.

The ministry noted that this decline was driven by lower prices of vegetables and edible oils, with pulses and cereals also showing a decline in inflationary pressure.

Inflation trend in rural and urban areas

Rural inflation fell to 1.07% in September from 1.69% in August, while urban inflation fell to 2.04% from 2.47% during the same period.

Sectional shot

• Housing inflation: 3.98% (up from 3.09% in August)
• Education inflation: 3.44% (slightly down from 3.60%)
• Healthy inflation: 4.34% (down from 4.40%)
• Transportation and communications: 1.82% (down from 1.94%)
• Fuel and light: 1.98% (less than 2.32%)

A nationwide image

Among the major states, Kerala (9.94%), Himachal Pradesh (2.98%), Tamil Nadu (3.09%), Uttarakhand (3.77%), and Jammu and Kashmir (4.79%) recorded the highest year-on-year inflation rate. In contrast, Uttar Pradesh (-1.21%), Telangana (-0.29%), and Madhya Pradesh (-0.05%) recorded the lowest or negative inflation rates.

The National Statistical Office (NSO) collected price data from 1,181 villages and 1,114 urban markets across India, achieving response rates of 99.83% in rural areas and 98.56% in urban areas. The next CPI data, covering October 2025, is scheduled to be released on November 12.