Good news for consumers! Inflation dips to 10-year low, GST cut pays off

New Delhi (The Uttam Hindu): Retail inflation in India has reached a record low of 0.25 percent in October, which is the lowest level in the last 10 years. This is the lowest inflation rate ever recorded in the current CPI series. This information was given by the government on Wednesday. Data released by the Ministry of Statistics and Programme Implementation stated that the inflation rate in rural areas was -0.25 percent in October, whereas it was 1.07 percent in September. Whereas, the inflation rate in urban areas was 0.88 percent, whereas it was 1.83 percent in September.

Food inflation was -5.02 percent in October, indicating a decline in food prices on a year-on-year basis. Food inflation in rural areas was -4.85 percent in October, while in urban areas, it was -5.18 percent.

A statement issued by the ministry said that the decline in headline inflation rate and food inflation rate is due to reduction in GST rates, fall in prices of oil, vegetables, fruits, eggs, footwear, grains and transport.

Inflation in transport and communication stood at 0.94 percent in October, down from 1.82 percent in September. Inflation in fuel and light stood at 1.98 percent in October, down from 1.98 percent in September. The Union Governor lowered the retail inflation forecast for FY26 (current financial year) to 2.6 percent, down from 3.1 percent in the August MPC.

The RBI has lowered its inflation forecast for the second quarter of the current fiscal year to 1.8 percent from 2.1 percent, for the third quarter to 1.8 percent from 3.1 percent, and for the fourth quarter to 4 percent. The RBI further forecast that inflation could be 4.5 percent in the first quarter of FY27.