New Delhi. October 2025 has been like those months for the Indian economy where on one hand inflation has come down to earth and on the other hand the growth figures are continuously raising new hopes. Retail inflation (CPI) reached a record low while wholesale inflation WPI remained negative for the fourth consecutive month. This is such a combination that has brought good news for the people.
According to the new government data, retail inflation was only 0.25 percent in October, which is much lower than 1.44 percent in September. Whereas wholesale inflation also stood at -1.21 percent. The sharp fall in food prices, cut in GST rates and weak base effect together have almost eliminated inflation. On the other hand, the growth of about 8 percent in the April-June quarter shows that the pace of the economy is strong.
WPI declines for the fourth month, prices cool at wholesale level
WPI wholesale inflation was minus 1.21 percent in October. This clearly means that many essential things have become cheaper as compared to last year. A significant decline was recorded in categories like food articles, mineral oils, basic metals, crude petroleum and natural gas. The index of primary articles decreased from 189 to 188.2. The prices of crude petroleum and natural gas fell by 3.13 percent while non-food articles also saw a decline of 1.73 percent. Yes, there was a jump of about 1.72 percent in minerals but no significant change was seen in food articles.
Slight increase in fuel and power but less pressure
The index of Fuel and Power Group reached 145 in October, which is above 143.4 in September. There was an increase of about 2.89 percent in the prices of electricity, while there was an increase of 0.67 percent in the prices of mineral oils. Coal remains stable here. Despite this, it did not have much impact on the overall WPI because the decline in manufactured products continued. This segment with 64 percent weightage decreased from 145.2 to 145.1. Basic metals, chemicals, motor vehicles and printing products became cheaper while prices of textiles, food products and electronic goods increased slightly.
Take the record of CPI, food inflation gave the biggest relief
The fall of retail inflation CPI to 0.25 percent in October is a historic event as it is the lowest level ever in this data series. Prices of food items fell by 5.02 percent, which is lower than last month’s 2.33 percent. The prices of vegetables fell sharply by 27 percent. Vegetable prices have been falling in double digits for six consecutive months, bringing down overall food inflation. The decline in fruits, oil, ghee, footwear, transport, communication and many other items also softened inflation further.
Effect of GST cut, relief in both rural and urban
The direct impact of the recent changes made in GST is visible on inflation. Cars, electronics and many everyday products have become cheaper. Inflation remained negative in both rural and urban areas. Minus 4.85 percent in rural and minus 5.18 percent in urban. Fuel and Light showed 1.98 percent inflation but its intensity was very minor. The share of food in the overall consumption basket may be decreasing, but the fall in food prices is still having the biggest impact on the expenditure of families.
Growth becomes faster, what will RBI do next
Along with falling inflation, GDP growth of about 8 percent in the May-June quarter shows that the economy is at full speed. RBI had indicated last month that low inflation may give scope for further policy easing. Now these October figures are further strengthening the hope that the possibility of interest rate cut in December is quite high.
Inflation data for October 2025 gives very strong signals for the Indian economy. Food prices, the GST cut, and softening commodity markets have pushed inflation down to historic lows while economic growth remains steady and robust. If this trend continues in the coming months, then many positive changes can be seen in the country’s economy, from RBI rate cuts to government policies.
