Bank of Baroda has released its latest report on India’s Consumer Price Index (CPI) trends, indicating that inflation remained largely stable in October 2025. According to the report, CPI inflation is expected to stay between 0.4% and 0.6%, suggesting that the moderate rise seen in September has been contained. The bank attributes this stability to falling commodity prices and softness in global markets, both of which have helped ease inflationary pressures.
In September, India’s CPI inflation saw the sharpest decline in eight years, dropping to 1.54% from 2.05% in August. This fall was primarily driven by lower food prices and favorable macroeconomic conditions. The report also notes that GST reductions and reforms have played a key role in keeping inflation under control.
The Bank of Baroda Essential Commodity Index (ECI) recorded a 3.6% fall in October, the steepest since its inception, marking the sixth consecutive monthly drop in essential commodity prices. Most of this decline came from cheaper vegetables and food items. However, potato prices bucked the trend with a slight increase. The bank concludes that this consistent drop in commodity prices could help sustain inflation control in the coming months.
