India Falls to 1.54 Percent in Sept 2025

India's CPI of 1.54 per cent in September 2025 has drawn significant attention as retail inflation in India fell to its lowest level since June 2017. This decline is largely attributed to easing food and fuel prices.

For SSC aspirants, understanding these developments is crucial, as questions on India's inflation, CPI trends, and monetary policy often appear in exams.

Current Inflation Trends in India

The consumer price index (CPI India) is a key measure of inflation in the country. In September 2025, India's CPI of 1.54 per cent marked a significant drop from August figures and the 8.4% rate in the same month last year.

This signals a period of low inflation, reflecting reduced pressure on household budgets.

• Food and beverage prices contracted by 1.4% in September, compared to a slight rise in August.

• Fuel and light inflation eased to 1.98% from 2.3% in August, lowering overall energy costs.

• Overall, retail inflation below 2 per cent indicates temporary relief for consumers and a favourable environment for spending.

SSC aspirants should note that consumer inflation trends in India are influenced by both domestic supply conditions and global price movements.

Food Inflation Analysis

Food inflation remains a major contributor to CPI movements. The subdued trend is due to a good monsoon and favourable base effects.

However, risks persist:

• Delayed monsoon withdrawal and heavy rains in some regions may damage crops.

• Edible oils continued double-digit inflation at 18.3%, driven by weak sowing, import dependence, and high global prices.

Understanding how food and fuel prices affected CPI in India is important for SSC exams, as these factors are directly linked to India's inflation.

Fuel and Energy Inflation

Fuel prices in India have been gradually easing since April, except for a brief spike in one month. The current rate of 1.98% helps reduce inflationary pressures, supports consumer spending, and provides relief in transportation and energy costs.

SSC aspirants should remember that RBI inflation comfort zone typically lies between 2–6%, and a fall below 2% raises discussions on potential policy changes. India CPI 1.54 percent being below the lower comfort limit is a key factor in this context.

Other Sectoral Inflation

• Clothing and footwear inflation slowed to 2.28% in September from 2.33% in August.

• Pan, tobacco, and other intoxicants inflation accelerated to 2.7%.

• Housing inflation rose to 4% from 3.1%, reflecting rising costs in the real estate sector.

These sectoral details provide a holistic view of India CPI monthly report trends for exam preparation.

Monetary Policy Implications

The RBI inflation projections have been revised downward four times consecutively. The low India CPI of 1.54 per cent has sparked expectations of:

• RBI interest rate cut expectations after low inflation in the upcoming December policy review.

• Potential boost to economic growth while keeping the inflation rate in India under check.

SSC aspirants should focus on the RBI monetary policy reaction to low inflation, as it is a recurring theme in current affairs questions.

Why India CPI 1.54 Percent Dropped

Several factors explain this historic low:

1. Good monsoon and favourable base effect lowering food inflation.

2. Decline in fuel and energy costs, reducing household expenses.

3. Moderate growth in other sectors like clothing and footwear.

4. Global economic conditions are stabilising import prices.

Understanding reasons for the decline in India's CPI in September 2025 is important for writing answers in exams. India's CPI of 1.54 per cent is the result of these combined factors.

Impact of Low CPI on Indian Economy

• Boosts consumer spending power as prices stabilise.

• Supports economic growth due to lower costs of living.

• May influence RBI inflation comfort zone and future India inflation forecast for 2025.

• Creates opportunities for policy decisions like interest rate cuts to stimulate investment.

India's CPI of 1.54 cent plays a crucial role in determining monetary policy actions and consumer confidence

Final Thoughts

In September 2025, India's CPI of 1.54 per cent marked the lowest retail inflation level since June 2017, mainly due to falling food and fuel prices.

The consumer price index (CPI India) shows that food prices contracted by 1.4%, while fuel prices in India eased to 1.98%, offering relief to households. Sectoral trends indicate moderate inflation in clothing and footwear, rising housing costs, and higher prices for pan, tobacco, and other goods. The RBI inflation comfort zone is being closely watched, as this low CPI may influence monetary policy decisions and interest rate expectations.

Overall, India's CPI of 1.54 per cent reflects easing price pressures and has implications for consumer spending and economic growth.