Prices dropped in October following the recent goods and service tax (GST) rationalisation. The reduction in GST rates, from 12% to 5% and 28% to 18%, significantly lowered prices of electrical appliances, automobiles, and food items.
Overall, retail inflation eased to a record low of 0.25% in October, marking the third time in FY26 that it remained below the Reserve Bank of India’s target range of 4%, with a margin of two percentage points on either side. Out of 299 items tracked in the Consumer Price Index (CPI), 135 with a weight of 38.2% recorded inflation of less than 2%.
Anoushka Sawhney takes a look:
GST cuts drive steep drop in auto, electrical appliances…
…and daily household items
LOWER GST BRINGS RELIEF TO FOOD PRICES
Overall, food inflation declined by 5.02% y-o-y and by 0.2% m-o-m
Price extremes widen: Coconuts soar, kitchen staples fall
