NEW DELHI: India’s annual retail inflation slowed to a record low of 0.25% in October as food prices fell sharply and tax cuts brought down the prices of items from cars to products in daily use, government data showed on Wednesday.
A Reuters poll had projected retail inflation at 0.48%.
Retail inflation was the lowest on record in the current data series which began in 2015 and uses 2012 price levels as a reference point. The print for September was revised to 1.44%.
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“The decline in headline inflation and food inflation during the month of October, 2025 is mainly attributed to full month’s impact of decline in Goods and Services Tax…,” the government said in a statement.
India in late September slashed goods and services tax on hundreds of mass consumption items including dairy and personal care products to spur domestic demand amid trade related uncertainties due to 50% punitive tariffs by the U.S.
Food prices fell 5.02% year-on-year in October against a revised fall of 2.33% in September. Vegetable prices declined 27.57% after a 21.38% fall a month ago.
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