Headline inflation:
- India’s retail inflation (CPI-based) fell sharply to 0.25% in October, down from 1.54% in
September (MoSPI data). - Lowest level in over 8 years, driven by record-low food prices and the impact of recent
GST rate cuts.
Key drivers of decline:
- Falling prices of vegetables, oils, fruits, footwear, cereals, and transport.
- Favourable base effect contributed to the moderation.
- GST cuts lowered prices across multiple consumer categories.
Sector-wise trends:
- Housing: Slight dip to 2.96% (from 2.98% in September).
- Education: Marginal increase to 3.49% (from 3.44%).
- Health: Eased to 3.86% (from 4.39%).
- Transport & Communication: Fell to 0.94% (from 1.82%).
- Fuel & Light: Unchanged at 1.98%.
Food inflation:
- Dropped sharply to -5.02% in October (from -2.28% in September).
- Rural: -4.85% | Urban: -5.18%.
- Lowest level since the current CPI series began.
State-wise highlights:
- Highest inflation: Kerala (8.56%) down from 9.05% in September.
- Next highest: Jammu & Kashmir (2.95%), Karnataka (2.34%).
- Deflationary states: Delhi, Assam, Jharkhand.
- Lowest inflation:Bihar (-1.97%), followed by Uttar Pradesh (-1.71%) and Madhya Pradesh (-1.62%).
GST reforms impact:
- New two-slab GST structure (5% and 18%) announced on September 3.
- Effective September 22, most daily-use items like stationery and dairy products moved to the 5% bracket, easing consumer prices.