New Delhi:Retail inflation slowed to an over 8-year low of 1.54 per cent in September and slipped below Reserve Bank's comfort zone mainly due to subdued prices of vegetables, fruits and pulses, showed government data released on Monday.

The consumer price index (CPI) based inflation was 2.07 per cent in August and 5.49 per cent in September 2024. The previous low was 1.46 per cent in June 2017.

It is for the second time that retail inflation has slipped below 2 per cent in 2025. The government has mandated the RBI to ensure CPI remains at 4 per cent with a margin of 2 per cent on the either side.

"There is decrease of 53 basis points in headline inflation of September, 2025 in comparison to August 2025. It is the lowest year-on-year inflation after June 2017," the National Statistics Office (NSO) said.

Year-on-year food inflation during September 2025 was (-) 2.28 per cent compared to (-) 0.64 per cent in August and 9.24 per cent in September last year.

"The decline in headline inflation and food inflation during the month of September 2025 is mainly attributed to favourable base effect and decline in inflation of vegetables, oil and fats, fruits, pulses and products, cereal and products, egg, fuel and light," NSO said.

Source:Ndtv