CPI Inflation Hits 8-Year Low of 1.54% in September 2025
Why in the news
CPI inflation fell to 1.54% in September 2025, an eight-year low and below the floor of RBI’s 2-6% band, mainly on cheaper food.
Key facts
- Lowest in over eight years; the last lower figure was 1.46% in June 2017.
- Below the 2% lower tolerance limit of RBI’s framework; fuel prices also eased.
| Food and beverages | Inflation |
|---|---|
| September 2024 | +8.4% |
| August 2025 | +0.05% |
| September 2025 | -1.4% |
Headline CPI: August 2025 was 2.1% and July 2025 was below 2%.
About retail inflation
It measures rising prices of household purchases, typically via the Consumer Price Index, and shows cost-of-living changes.
Exam angle
- RBI band: 2-6%.