India's Inflation Hits Record Low of 0.25% in October, Food Prices Drive the Fall
November 12, 2025
India's inflation rate shocked economists by plunging to a record low in October 2025. The Consumer Price Index (CPI), which measures how prices rise for everyday goods and services, climbed only 0.25% compared to last year. This is below the expected 0.4% rise predicted by experts in a Bloomberg survey. The latest figure is the lowest since 2012, when the current CPI series began.
What caused this surprising drop? The answer lies in food prices. They fell sharply, easing the biggest weight on the inflation basket. This cool-down in food prices means less pressure on Indian families' wallets.
Because of this unusual dip in inflation, many economists are now predicting the Reserve Bank of India will take a bolder step and cut interest rates more aggressively soon. Lower interest rates usually help businesses grow and can bring more money into the economy.
A grocery store in Mumbai perfectly captures the relief many customers feel as prices stabilize and become friendlier. This drop gives hope that the cost of living may become easier to handle in the coming months.
In short, India's October inflation data has stirred excitement and expectation. With food prices pulling inflation down to a historic low, the economic path could get smoother, and interest rates might follow a more daring downward path soon.
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Tags:
India Inflation
Consumer price index
Food Prices Drop
Interest rate cuts
Economy
2025
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