Inflation eases to 0.25% in October, lowest level since 2012, as food prices fall:

Retail Inflation: India’s retail inflation declined sharply to 0.25% in October 2025. This is the lowest level in the current series that started in 2012. This rate was 1.44% in September. According to data released by the Ministry of Commerce and Industry on November 12, the decline was mainly due to a sustained decline in food prices.

Big discounts on food items

The Food Index (FOI) stood at -5.02% in October, while it was -2.3% in September. This means that prices of cereals, pulses, vegetables and other essential food items continued to fall. On a monthly basis, food prices declined by 0.25% in October, while the overall price index registered a marginal increase of 0.15%.

Reduction in prices of grains, pulses and vegetables

Food inflation stood at -0.92% in October, the lowest in four years. Prices of pulses and vegetables fell for the ninth consecutive month, bringing relief to consumers. This shows that food supplies remained stable and prices remained under control.

Oil was the only category where prices rose

Oil was the only food category in which inflation remained in double digits. However, it moderated slightly compared to the previous month. According to government data, coconut oil witnessed a massive surge of nearly 93%, making it the costliest product in October.

Increase in prices of gold, silver and personal care

Inflation across categories including gold and silver hit a 31-month high, rising to 5.71% from 5.35%. Inflation of personal care and other items also increased from 19.4% to 23.9%, increasing people’s daily expenses.

Inflation remains well below RBI target

The average inflation rate in the first half of the financial year 2025-26 stood at 2.22%, which is well below the Reserve Bank of India (RBI) target of 4%. The relief was driven by a decline in global commodity prices and the high base effect of the previous year, which eased inflationary pressures.

RBI cuts inflation forecast for FY26

Reflecting this moderation in inflation, the RBI has reduced its inflation forecast for FY26 to 2.6% from 3.1%. However, the RBI remains cautious in the coming months due to uncertainty in global energy and food markets.