India’s headline inflation falls to 1.54% in September

Published 13/10/2025, 12:10
India’s headline inflation falls to 1.54% in September

Investing.com -- India’s headline inflation rate dropped to 1.54% in September 2025, marking the lowest level since June 2017, according to data released by the Ministry of Statistics & Programme Implementation on Monday.

The inflation rate decreased by 53 basis points compared to August’s figure of 2.07%. Food inflation remained negative for the fourth consecutive month, registering at -2.28% in September, down from -0.64% in August.

The decline in headline and food inflation is primarily attributed to favorable base effects and lower prices across several categories including vegetables, oils and fats, fruits, pulses, cereals, eggs, and fuel.

Rural inflation fell to 1.07% in September from 1.69% in August, while urban inflation decreased to 2.04% from 2.47% during the same period. Food inflation in rural areas was -2.17%, compared to -0.70% in August, while urban food inflation stood at -2.47%, down from -0.53%.

Housing inflation, which is only compiled for urban areas, increased to 3.98% in September from 3.09% in August. Education inflation slightly decreased to 3.44% from 3.60%, while health inflation eased marginally to 4.34% from 4.40%.

Transport and communication inflation declined to 1.82% from 1.94%, and fuel and light inflation decreased to 1.98% from 2.32% in August.

The states with the highest inflation rates included Kerala (9.05%), Jammu & Kashmir (4.38%), Karnataka (3.33%), Punjab (3.06%), and Tamil Nadu (2.77%).

The ministry noted that September’s food inflation is the lowest since December 2018, with significant price decreases observed in vegetables (-21.38%), pulses (-15.32%), and onions (-49.85%).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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