Retail inflation eases to record low of 0.25% in October as food prices fall

According to official figures released on Wednesday, retail inflation fell to a historic low of 0.25% in October due to a significant decline in food prices and reduced taxes on necessities.

With 2012 serving as the base year, the most recent consumer price index (CPI) print was significantly lower than anticipated and represents the lowest reading since the current CPI series started in 2015. The September retail inflation rate was lowered to 1.44%, underscoring the recent months’ consistent lowering trend.

“The decline in headline inflation and food inflation during October 2025 is mainly attributed to the full month’s impact of the reduction in Goods and Services Tax (GST),” the government said in a statement.

After the U.S. levied 50% punitive tariffs, the government lowered GST rates on hundreds of mass-consumption commodities, such as dairy products and personal care items, in late September to promote domestic demand amid growing trade uncertainty.

Food inflation experienced a sharp decline, falling 5.02% year over year in October as opposed to a corrected decline of 2.33% in September. Prices for vegetables fell 27.57%, continuing a month-long reduction of 21.38%.

It is anticipated that the extraordinary slowdown in inflation will lessen the strain on household budgets and may bolster the argument for further government assistance to maintain consumer growth. Given the unpredictability of global prices and domestic demand throughout the holiday season, economists will be keeping an eye on how long this disinflationary trend lasts.