base effect

RETAIL INFLATION HITS RECORD LOW : CAUSES, IMPACTS & POICY RESPONSE

Retail inflation in India fell to a historic low of 0.25% in October 2025, primarily due to GST rate cuts, a favourable base effect, and a decline in prices of key food items such as vegetables, fruits, oils, and eggs. While food and beverage prices contracted, most other categories, including fuel, housing, and miscellaneous goods, saw higher inflation compared to last year. The decline provides short-term relief to households and businesses, stabilizes macroeconomic conditions, and supports policy measures aimed at economic growth and price stability.

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