GST cut brings relief: Inflation drops to 8- year low

New Delhi (Uttam Hindu News): Retail inflation fell to 1.54 percent in September, the lowest level since June 2017, according to data released by the government.

Retail inflation rate in September has decreased by 0.53 percent compared to August.

The Ministry of Statistics and Program Implementation reported that food inflation was -2.28 percent in September. Food inflation in rural areas was -2.17 percent and in urban areas was -2.47 percent. Food inflation was 0.64 percent in August.

The reason for the reduction in inflation rate is believed to be GST reform, due to which a reduction in prices of everything from daily consumption to vehicles has been seen in the country.

The government reported that housing inflation was 3.98 percent in September, up from 3.09 percent in August. Education inflation was 3.44 percent in September, down from 3.60 percent in August 2025.

Inflation in transport and communication declined to 1.82 per cent in September 2025 from 1.94 per cent in August 2025. Retail inflation in fuel and power stood at 1.98 per cent in September from 2.32 per cent in August.

While announcing the RBI MPC decisions earlier this month, Governor Sanjay Malhotra had lowered the inflation forecast for FY26.

The Union Governor lowered the retail inflation forecast for FY26 (current financial year) to 2.6 per cent, from 3.1 per cent in the August MPC.

The inflation forecast for the second quarter of the current financial year has been reduced from 2.1 percent to 1.8 percent, for the third quarter from 3.1 percent to 1.8 percent and for the fourth quarter to 4 percent.

RBI further estimated that inflation may remain at 4.5 per cent in the first quarter of FY27.