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CPI Inflation Hits 8-Year Low of 1.54% in September 2025

14 October 20251 min read
ECONOMYCPI Inflation Hits8-Year Low of1.54% inSeptember 202514 October 2025safalsetu.com

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 beveragesInflation
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%.

Test yourself

1. What was India's CPI retail inflation in September 2025?

The notes give 1.54%, an eight-year low.

2. What is the RBI's inflation tolerance band under its monetary policy framework?

The framework is 2%-6%; September fell below the 2% floor.

3. Which category's price decline mainly drove the fall in retail inflation in September 2025?

Food and beverages contracted 1.4% in September.