India’s Headline Inflation Falls to 1.54% in September 2025 – Lowest Since 2017
As per PIB’s 13 October 2025 release, the Ministry of Statistics and Programme Implementation (MoSPI) reported that India’s headline inflation dropped to 1.54% in September 2025 – the lowest since June 2017, marking the fourth straight month of negative food inflation.
Key Highlights:
- Headline CPI Inflation: Down to 1.54% in September 2025 (from 2.07% in August 2025). This marks the lowest inflation since June 2017.
- Food Inflation: Continued in the negative zone at –2.28%, mainly due to cheaper vegetables, oils, pulses, and fruits.
- Rural vs Urban: Rural inflation eased to 1.07%, while urban inflation moderated to 2.04%.
- Sectoral Snapshot:
- Housing Inflation: 3.98%
- Education Inflation: 3.44%
- Health Inflation: 4.34%
- Transport & Communication: 1.82%
- Fuel & Light: 1.98%
- State Trends: Inflation decline observed across most major states; variation attributed to base effects and lower food prices.
- Data Coverage: CPI data collected from over 2,295 markets (rural + urban) across India with a response rate above 98%.
India’s Inflation Snapshot – September 2025(Base Year: 2012 = 100)
| Category / Sector | August 2025 Inflation (%) | September 2025 Inflation (%) | Change (Basis Points) | Remark |
|---|---|---|---|---|
| Headline CPI (Combined) | 2.07 | 1.54 | 🔻 -53 | Lowest since June 2017 |
| Food Inflation (CFPI, Combined) | -0.64 | -2.28 | 🔻 -164 | 4th consecutive negative month |
| Rural Headline CPI | 1.69 | 1.07 | 🔻 -62 | Rural prices easing further |
| Urban Headline CPI | 2.47 | 2.04 | 🔻 -43 | Cooling in city inflation |
| Rural Food Inflation | -0.70 | -2.17 | 🔻 -147 | Sharp fall in food prices |
| Urban Food Inflation | -0.53 | -2.47 | 🔻 -194 | Biggest urban food drop since 2018 |
| Housing Inflation | 3.09 | 3.98 | 🔺 +89 | Driven by rental rise |
| Education Inflation | 3.60 | 3.44 | 🔻 -16 | Slight moderation |
| Health Inflation | 4.40 | 4.34 | 🔻 -6 | Stable medical costs |
| Fuel & Light Inflation | 2.32 | 1.98 | 🔻 -34 | Cheaper household fuel |
| Transport & Communication | 1.94 | 1.82 | 🔻 -12 | Minor easing |
| Personal Care & Effects | 17.92 | 19.39 | 🔺 +147 | Highest among all categories |
The sharp cooling in inflation – led by food price correction and base effects – offers relief to households and may provide room for policy flexibility. However, sustained deflation in food prices could signal weak rural demand.
Source : Ministry of Statistics & Programme Implementation , PIB
