The decline in Consumer Price Index (CPI) or retail inflation due to massive GST rate rationalisation has been around 25 bps so far in the September-November 2025 period, according to estimates put forth by SBI Research.

GST rationalisation has led to a reduction in CPI inflation in India.

SBI Research had earlier estimated that the impact of GST on CPI could be around 85 basis points.

"However, item-by-item calculation now shows that the decline in CPI inflation due to GST has been around 25 basis points so far in the Sep-Nov'25 period," the SBI Research report read.

"We believe that this impact does not account for the discounts on e-commerce sales, which could be higher because of GST reduction. We believe that total reduction in CPI owing to GST could be 35 bps (basis points) in 20

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