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Retail inflation slips to 1.54% in September amid decline in food prices
Oct-13-2025

Retail inflation, measured by the Consumer Price Index (CPI), slipped to 1.54 per cent in September 2025 from 2.07 per cent in August 2025. The CPI inflation was 5.49 per cent in September 2024. The decline in headline inflation and food inflation during September 2025 is mainly attributed to favourable base effect and decline in inflation of vegetables, oil and fats, fruits, pulses and products, cereal and products, egg, fuel and light. The September inflation also remained within the Reserve Bank of India’s (RBI) medium-term target of 4 per cent. Food inflation, measured by the Consumer Food Price Index (CFPI), stood at (-) 2.28 per cent during September 2025 compared to (-) 0.64 per cent in August and 9.24 per cent in September last year.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in September 2025 stood at 1.07 per cent over 1.69 per cent in August 2025. The Urban CPI (General) stood at 2.04 in September as against 2.47 per cent in August. The index value for Rural, Urban and Combined CPI (General) stood at 198.8, 195.3 and 197.2 respectively, in September 2025. The price data are collected from selected 1181 villages and 1114 urban Markets covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of September, 2025, NSO collected prices from 99.83 per cent villages and 98.56 per cent urban markets while the market-wise prices reported therein were 88.14 per cent for rural and 92.01 per cent for urban.

Besides, inflation in Food and beverage slipped to (-) 1.37 per cent in September 2025 from 0.05 per cent in August 2025, with prices of vegetable coming at (-) 21.38 per cent in the reporting month from (-) 15.92 per cent in the previous month. Inflation in Oils and fats declined to 18.34 per cent in September from 21.24 per cent in August. Inflation for cereals came down to 2.06 per cent in September from 2.70 per cent in August. The inflation rate for milk and products inched down to 2.51 per cent in September from 2.63 in August. Meanwhile, inflation in pulses and products stood at (-) 15.32 per cent in September over at (-) 14.53 in August. However, inflation in meat and fish rose to 2.15 per cent in the month under review over 1.48 per cent in in preceding month. 

Clothing and footwear inflation edged down to 2.28 per cent in September 2.33 per cent in August, while Housing inflation increased to 3.98 per cent in the reporting month from 3.09 per in the prior month. Education inflation slowed to 3.44 per cent in September from 3.60 per cent in August, and transport and communication inflation fell to 1.82 in September from 1.94 per cent in August.  Health inflation also came down to 4.34 per cent in September from 4.40 per cent in August, and fuel and light inflation fell sharply to 1.98 per cent in September from 2.43 per cent in August. However, inflation for Personal care and effects rose to 19.39 per cent in September 2025 from 16.61 per cent in August 2025. 

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