A big relief news has come to the countrymen during the festive season. According to the latest report of the National Statistical Office (NSO), India’s consumer price index (CPI) based retail inflation is set to come in at 1.54 per cent in September 2025, which is 0.53 per cent lower than in August last month. This figure is the lowest level since June 2017, which will have a huge impact on the pockets of consumers and they will be able to save more than before.
due to falling inflation
The main reason for the improvement in the situation is the falling rate of food prices. A significant decline has been recorded in the prices of vegetables, pulses, oils, fats, fruits, grains and eggs in September. Especially the prices of green vegetables have fallen by 21.38 percent, while the prices of pulses have seen a decline of 15.32 percent. Food inflation reached -2.28 percent in September, the lowest since December 2018. Apart from this, prices of oils, fats and fruits are also under control, which has reduced the pressure on inflation.
Impact of government actions
The Government of India has succeeded in controlling prices due to the recently implemented GST reforms. GST reform has reduced the pressure on the prices of goods in the market, due to which the expenditure is reducing. Experts believe that this trend may continue further, which will provide relief to people from the burden of inflation during the festive season.
Meaning of inflation rate for the common man
Consumers will directly benefit from the reduction in inflation because when prices go down, everyday purchases will be cheaper. This will make it easier for housewives especially to manage their kitchen budget and they will be able to save more than before. It is also a positive sign for the farming and food production sectors, indicating improvement in the supply chain.
Impact on the overall economic situation
Core inflation, excluding food and fuel, is around 4.5 per cent, showing a slight increase. However, with overall inflation being so low, the Reserve Bank of India is more likely to cut rates, which will boost economic growth. After this decline in inflation during the festive season, it is expected that economic activities will pick up pace.