India’s retail inflation is expected to decline sharply in October 2025 as food prices ease and GST reforms stabilize supply chains. According to Union Bank of India’s forecast, the CPI could drop below 0.5%, marking an eight-year low. The slowdown reflects moderation across essential goods and services, alongside effective fiscal management. Analysts believe this trend will support policy stability and provide the Reserve Bank of India more room for growth-friendly measures as the FY26 CPI projection is revised down to 2.6%.