Archive · 19 Nov 2025
India's Inflation Plummets; RBI Expected to Cut Rates
India's consumer prices fell to their lowest level in seven years in October, mainly because food prices, especially vegetables like potatoes, tomatoes, and onions, became cheaper.
However, some items like coconut oil became more expensive.
The Reserve Bank of India is expected to cut interest rates in December due to this drop in inflation.
Consumer inflation in India fell to 0.25% year-on-year in October 2025
Sharp decline driven by food and beverages, with vegetables seeing 27.6% deflation
Potato, tomato, and onion prices dropped significantly, contributing to overall deflation
Edible oils, particularly coconut oil, saw price increases
RBI expected to cut repo rate by 25 basis points in December 2025
- Who
- Indian consumers and the Reserve Bank of India
- What
- Experienced a significant drop in consumer inflation and an expected interest rate cut
- When
- In October 2025 (inflation) and December 2025 (expected rate cut)
- Where
- India
- Why
- Due to a sharp decline in food and beverage prices, particularly vegetables, and to manage inflation
Deflationary Pressures
Potential Inflationary Pressures
Food Prices
Deflationary Pressures
Sharp decline in vegetable prices, particularly potatoes, tomatoes, and onions
Potential Inflationary Pressures
Potential future increases due to lower kharif sowing of oilseeds
Edible Oils
Deflationary Pressures
Coconut oil surged 92.67% y-o-y
Potential Inflationary Pressures
Global vegetable oil prices remain elevated
- Inflation Rate
- 0.25% year-on-year
- Food and Beverages Inflation
- Deflation of 3.72%
- Vegetable Inflation
- Deflation of 27.6%
- Coconut Oil Inflation
- Increase of 92.67%
- Expected Repo Rate Cut
- 25 basis points in December 2025
Sources
How potato, tomato and onions led to lower CPI in October
RBI Likely To Cut Repo Rate By 25 Bps In December Policy Meet: Morgan Stanley
25bps repo rate cut likely in December MPC meet, says Morgan Stanley
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