• Lowest inflation rate


• A record low


• Rate fell in October

The common man has got a big relief on the inflation front. According to government data released on November 12, India’s retail inflation rate fell to 0.25 percent in October, the lowest level in the running series since 2011, which was 1.54 percent in September. Inflation The decline came on the back of a sustained decline in food prices, with the food index falling to -5.02 percent in October, from -2.3 percent in the previous month. The index shows a major decline in major food and non-food staples.

Inflation averaged 2.22 percent in the first half of fiscal 2026, well below the Reserve Bank’s (RBI) medium-term target of 4 percent. Reflecting this decline, the RBI recently revised its inflation forecast for FY2026 to 2.6 percent from 3.1 percent.

Inflation has come down, will interest rates be cut now?

After encouraging retail inflation figures, Garima Kapoor, economist at Elara Institutional Equities “The sharp fall in food prices and the benefit of a higher base have pushed CPI inflation to an all-time low. We estimate CPI inflation to be much lower than RBI’s estimate of 2.6% in FY26 and CPI to remain below 2% in FY26,” she said. He added that due to these inflation figures, the RBI will cut interest rates in December 2025 and another 25 basis points in February 2026.

Oil remained expensive

Oil was the only food category to post double-digit inflation in October, though prices fell from the previous month. According to ministry data, coconut oil witnessed inflation of nearly 93%, the highest among all commodities.

Retail Inflation: Good News for Common Citizens, Big Drop in Inflation; Relief in food prices

As prices of these goods fall, inflation falls

Foodgrain prices, which account for nearly half of the Consumer Price Index (CPI), fell to -5.02% compared to -2.28% in September. Food grains in October 2025 inflation The current CPI is the lowest in the series. The government said in a press release that the decline in core inflation and food inflation in October was mainly due to reduction in GST, favorable base effects and decline in inflation in oil and fats, vegetables, fruits, eggs, footwear, grains and products and transport and communication.

RBI may cut repo rate again next month

Inflation is easing fast, with the latest official data showing Asia’s third-largest economy grew by nearly 8% in the April-June quarter, and the RBI is expected to cut interest rates again next month. Meanwhile, inflation was -4.85% in rural areas and -5.18% in urban areas. The year-on-year inflation rate for the fuel and light category was recorded at 1.98% in October.

Good news for the general public! The inflation rate will come to 3.1 percent in the next financial year; Report of Bank of Baroda

Average Indian households are cutting back on food spending

Vegetable prices have declined by double digits for six consecutive months on an annualized basis, keeping food inflation, which is almost half of the CPI, under control. However, inflation has picked up since February. Although inflation remains below the RBI’s 4% target, economists say it masks changes in household spending patterns. The Household Consumption Expenditure Survey 2023-24 shows that the share of food in the average Indian household’s budget has declined.