India’s food inflation continued its downward slide in September, with the Bank of Baroda Essential Commodities Index (BoB ECI) remaining in deflation for the fifth consecutive month, dropping by 1 per cent year-on-year and accelerating to 3.8 per cent in the first week of October 2025.

The moderation was largely driven by a sharp decline in prices of tomato, onion, and potato, key vegetables that had earlier pushed inflation higher. “Tomato prices witnessed a steep correction in September, supported by robust arrivals and efficient supply management,” said Dipanwita Mazumdar, Economist at Bank of Baroda.

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According to the report, headline CPI is expected to ease to around 1.2 per cent in September 2025, aided by a favourable statistical base and GST rate cuts being passed

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