Usman Salis
⬤ India's Consumer Price Index inflation for October 2025 dropped to an unprecedented 0.25%, representing the lowest level recorded in the current CPI series and marking a historic moment for the country's price stability.
⬤ Data visualization confirms this dramatic cooling of inflation. After years of fluctuations between 4% and 7%, headline inflation has steadily declined throughout 2025, reflecting broad-based easing across key consumer categories. While the CPI index continues its gradual upward trend, the rate of price increases has slowed sharply, illustrating a rare phase of near-zero inflation in the Indian economy.
⬤ While falling inflation brings relief to consumers through lower living costs, it can also signal potential economic risks. Extended periods of low inflation could point to weak demand growth or declining industrial output, raising concerns about future earnings and government revenues. Policymakers, including the Reserve Bank of India, may need to reassess monetary policy if deflationary pressures emerge.
⬤ This data marks a dramatic shift from the double-digit inflation rates seen in the early 2010s, when CPI inflation peaked near 11%. For India's economy, this milestone represents both an achievement in price stability and a potential challenge for maintaining growth momentum.
Usman Salis
