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NSO: Retail Inflation Eases to 99-Month Low at 1.54% in September 2025.

Economy Business | Dated: 16 Oct 2025

In September 2025, the National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), released the Consumer Price Index (CPI) data for rural, urban, and combined segments. India’s retail inflation, measured by CPI, dropped to a 99-month low of 1.54%, marking the lowest Year-on-Year (Y-o-Y) inflation since 2017 and remaining below the Reserve Bank of India (RBI)’s medium-term target of 4%.

🎯 Key Highlights:

  • - The CPI-based retail inflation declined from 2.07% in August 2025 to 1.54% in September 2025, significantly lower than the 5.5% registered in September 2024, reflecting a sustained easing in consumer price pressures.
  • - Food inflation, tracked via the All India Consumer Food Price Index (CFPI), registered negative growth for the fourth consecutive month, falling by 164 basis points from -0.64% in August 2025 to -2.28% in September 2025. Rural and urban food inflation stood at -2.17% and -2.47%, respectively.

💡 Other Important Facts:

  • (i) The fall in headline and food inflation was mainly driven by a favourable base effect and reduction in prices of key items including vegetables, oil and fats, fruits, pulses and products, cereals and products, eggs, and fuel.
  • (ii) Among major states, Kerala recorded the highest Y-o-Y inflation at 9.05%, followed by Jammu & Kashmir (4.38%), Karnataka (3.33%), Punjab (3.06%), and Tamil Nadu (2.77%).
  • (iii) Certain states, such as Uttar Pradesh (-0.61%) and Assam (-0.56%), experienced negative inflation, reflecting a decline in overall consumer prices in these regions.

📚 Test Your Knowledge:

As per recently released NSO data, India’s retail inflation (CPI) in September 2025 stood at:

Correct Answer: 1.54%

🚀 Quick Recap: