India’s retail inflation eased sharply to 1.54% in September 2025, the lowest since 2017, from 2.07% in August. The fall was driven by steep declines in vegetable and fuel prices. Inflation now sits well below the RBI’s 2–6% target range. Economists had expected 1.70%. Core inflation also moderated, reflecting softer consumer demand and stable supply chains. The data strengthen expectations for potential policy accommodation in FY26 as price stability reinforces RBI’s growth-support stance.