What's the story

India's retail inflation has plunged to a decade-low of 0.25% in October, down from 1.44% in September. The decline is largely attributed to a sustained fall in food prices, particularly vegetables and cereals. The new figure also marks the fourth consecutive month that inflation has remained below the RBI 's medium-term target of 4%. The latest retail inflation figure is the lowest level on record since the data series began in 2015, using 2012 prices as the reference point.

Economic impact

Cut in GST may have contributed to decline in inflation

The retail inflation rate has also stayed below the central bank's tolerance ceiling of 6% for seven consecutive months. Food prices, which make up nearly half of the Consumer Price Index (CPI) basket, fell 5.02% year-on-y

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