India’s annual retail inflation rate plunged to 1.54% in September 2025, the lowest since June 2017, with food‑price deflation of 2.28% contributing heavily. Rural inflation dropped to just 1.07% and urban to 2.04%, while sectoral relief from lower vegetable, oil and pulses prices helped ease household cost pressures. With inflation well below the central bank’s lower tolerance band, policy makers now have greater flexibility to consider rate cuts even as growth remains resilient and structured reforms continue.