The reading came slightly above a CNBC-TV18 poll estimate of 1.50%. This marks the lowest inflation level since June 2017. The CPI was 5.49% in September 2024.
The moderation in inflation was driven by continued weakness in food prices, with food inflation remaining negative for the fourth straight month. Food inflation stood at (-)2.28% in September compared to (-)0.69% in August and 9.24% in the same month last year.
Rural inflation eased to 1.07% from 1.69% in August, while urban inflation fell to 2.04% from 2.47% a month earlier. Among key components, vegetable inflation declined further to (-)21.38% from (-)15.92% in August, and pulses inflation softened to (-)15.32% from (-)14.53%.
Fuel and light inflation stood at 1.98% versus 2.32% in the previous month, while housing inflation rose to 3.98% from 3.09%. Clothing and footwear inflation was marginally lower at 2.28% compared to 2.33% in August. Core inflation, excluding food and fuel, climbed to 4.5% in September from 4.1% in August, marking its highest level since September 2023.
In its October bi-monthly monetary policy, the Reserve Bank of India (RBI) lowered its inflation projection for 2025-26 to 2.6% from 3.1% estimated in August. Regarding the inflation outlook for the second half of the fiscal year, RBI said that healthy progress of the south-west monsoon, higher kharif sowing, adequate reservoir levels and comfortable buffer stock of foodgrains should keep food prices benign.
First Published: Oct 13, 2025 4:35 PM IST
