India’s CPI forecast below 0.5% for October 2025 on lower food prices and GST reforms

Union Bank of India’s report projects retail inflation (CPI) below 0.5% for October 2025 — the lowest in eight years — as food costs decline and GST reform effects stabilize consumer prices. For FY26, CPI is expected to average 2.6%. Economists view the trend as favorable for RBI’s policy stance and bond yields, supporting growth without rate hikes through early 2026.