Retail inflation in India fell sharply to 1.54% in September 2025, the lowest level since June 2017, as food prices fell for the fourth month in a row, according to data released by the Ministry of Statistics and Programme Implementation.

Key Highlights

• India’s retail inflation cooled to 1.54% in September — its lowest since 2017, led by food price declines. 
• Food prices contracted year-on-year for the fourth consecutive month, with vegetables falling over 21%.

The most recent figures, based on the All India Consumer Price Index (CPI), represent a 53-basis point drop from the August inflation rate of 2.07%, indicating a consistent cooling trend in price pressures across key categories.

The Consumer Food Price Index (CFPI) fell -2.28% year on year, compared to -0.64% in August, indicating a further drop in food prices. The release stated that rural food inflation was -2.17%, while urban food inflation was -2.47%.

The release attributed the decrease in both headline and food inflation to a favorable base effect and lower prices for vegetables, edible oils, fruits, pulses, cereals, eggs, fuel, and light goods. The ministry stated that September food inflation was the lowest since December 2018.

In the rural sector, headline inflation fell to 1.07% in September, down from 1.69% in August, while urban inflation fell to 2.04% from 2.47% during the same period.

Also Read: India's WPI Inflation Climbs to 0.52% in Aug on Rising Food Costs

Among other key components, housing inflation increased to 3.98% in September, up from 3.09% the previous month, while education inflation fell slightly to 3.44% from 3.60%.

Inflation in the health category fell slightly, to 4.34% from 4.40% in August. Similarly, transportation and communication inflation fell to 1.82% from 1.94%, while fuel and light inflation fell to 1.98% from 2.32% the previous month.