The current inflation rate in India is 3.16%, which is calculated based on CPI (Consumer Price Index) values for the last 12 months ending in August 2025. Read more India ’s consumer price inflation eased to 1.54% in September 2025, down from 2.07% in August and below market expectations of 1.7%. This marked the lowest rate since June 2017 and fell below the Reserve Bank of India’s 2% lower tolerance limit under its inflation-targeting framework. CPI inflation moderated to a 7-month low of 3.6% in February 2025, aided by a sharp decline in vegetable prices. Core inflation crossed 4% for the first time in 14 months, reaching 4.08%. Industrial growth strengthened, with IIP expanding by 5.0% in January 2025, led by manufacturing and mining. I. Key highlights: Headline Inflation : Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of January 2025 over January 2024 is 4.31% (Provisional). There is decline of 91 basis points in headline inflation of January, 2025 in comparison to December 2024. It is the lowest year-on-year inflation after August, 2024.
