Country’s retail inflation moderated to eight year low of 1.54 per cent in September this year, down from 2.07 percent recorded in August 2025. According to data released by the Ministry of Statistics and Programme Implementation, it is the lowest year-on-year inflation rate after June 2017. Meanwhile, inflation in rural areas softened to 1.07 percent and at 2.04 percent in urban regions.
The food inflation rate, based on the All India Consumer Food Price Index, remained negative for the fourth consecutive month, slipping further into deflation at 2.28 per cent in September, the lowest since December 2018. Corresponding food inflation rate for rural areas also decelerated to 2.17 percent while urban areas also witnessed deflation, standing at 2.47 percent during last month.
According to the Ministry, the decline in headline inflation and food inflation during the month of September is mainly attributed to favorable base effect and to decline in the prices of vegetables, oil, fruits, pulses and cereal.
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