India’s inflation cools sharply, GDP posts robust growth in recent quarter

Retail inflation in India eased to 1.54% in September 2025, the lowest in eight years, largely driven by falling food prices and improved supply conditions. The Reserve Bank of India revised its FY26 inflation projection down to 2.6%, citing tame core inflation and stable global commodity prices. Separately, India reported a strong GDP expansion of 7.8% year-on-year for the June 2025 quarter, supported by a 7% rise in private consumption and 7.4% higher government spending. Policymakers and markets will weigh low inflation against robust growth when considering monetary and fiscal calibration in the coming quarters.