India’s retail inflation dropped to a record 0.3% in October, giving households some relief as everyday prices rise more slowly.
The drop is largely due to falling food prices. Overall food inflation fell around 5%, with vegetables down over 27%. Onion prices plunged 54%, tomatoes 43%, and potatoes 37%. Cuts in the GST on everyday items also helped keep prices in check.
Core inflation, which excludes volatile food and fuel costs, eased slightly to 4.4%, while September’s inflation was revised to 1.44%.
Economists say the subdued inflation gives the Reserve Bank of India space to consider cutting interest rates in December. However, they caution that lower prices alone do not guarantee stronger growth, with upcoming GDP data expected to show the real state of the economy.
For consumers, this means some relief in their daily expenses, while policymakers now have room to support economic growth.
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