India’s CPI inflation has dropped to a record low of 0.25% in Oct 2025, significantly lower than 1.44% in September while market consensus was 0.4%. The September CPI inflation was downwardly revised to 1.44% from 1.54%. The contributing factor for sharp fall in the CPI print is the first-round impact of GST rate cut on prices along with subdued food inflation and favourable base effect. The GST rate cut pass-through is seen higher in FMCG products. Meanwhile, the food inflation witnessed continued deflation driven by the fall in prices of vegetables and fruits (-0.2%) and pulses (0.7%) on a month-on-month basis, along with moderation seen in monthly momentum in cereals (-0.2%) and edible oil (0.4%) prices.
