SF Prep Notes

CPI inflation falls to 1.54% in September 2025, the lowest since June 2017

India's retail inflation based on the All India Consumer Price Index fell to 1.54% in September 2025, the lowest since June 2017, with food inflation at -2.28%, MoSPI said on 13 October 2025.

Summary

India's year-on-year headline inflation based on the All India Consumer Price Index (CPI, base 2012=100) was 1.54% (provisional) in September 2025, down 53 basis points from August and the lowest since June 2017, the Ministry of Statistics and Programme Implementation said on 13 October 2025. Food inflation based on the Consumer Food Price Index (CFPI) was -2.28%. Rural headline inflation was 1.07% and urban 2.04%. The decline was attributed to a favourable base effect and lower inflation in vegetables, oils and fats, fruits, pulses, cereals, eggs, and fuel and light. Housing inflation (urban only) rose to 3.98%, while health inflation was 4.34% and education 3.44%. Prices are collected from 1,181 villages and 1,114 urban markets.

Key facts

Headline CPI inflation, Sep 2025
1.54% (provisional) — lowest since June 2017
Change vs Aug
-53 basis points
Food inflation (CFPI)
-2.28%
Rural / Urban
1.07% / 2.04%
Housing / Health / Education
3.98% / 4.34% / 3.44%
Base year / releaser
2012=100 / NSO, MoSPI

Practice MCQs 3 questions

Q1

India's headline CPI inflation for September 2025 (1.54%) was the lowest since:

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Correct answer: B — June 2017

PIB (MoSPI): headline inflation of 1.54% in September 2025 is the lowest year-on-year inflation after June 2017.

Q2 Advanced

What was the all-India food inflation based on the Consumer Food Price Index (CFPI) in September 2025?

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Correct answer: D — -2.28%

PIB (MoSPI): CFPI-based food inflation for September 2025 is -2.28% (provisional); -2.17% and -2.47% are the rural and urban figures.

Q3 Advanced

Consider the following statements about the CPI release for September 2025: 1. The housing index used in CPI is compiled for the urban sector only. 2. Urban headline inflation was lower than rural headline inflation in September 2025. Which of the statements given above is/are correct?

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Correct answer: A — 1 only

Only 1 is correct. PIB: the housing index is compiled for the urban sector only; urban headline inflation (2.04%) was higher than rural (1.07%).

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