Inflation in October 2025 reached 6.2% based on the Consumer Price Index (CPI), marking the highest annual rate since October 2024. This represents an increase from the previous month’s 5.6% (YoY). Month-over-month, the CPI rose by 1.8% in October.
Rising Food Costs
Food inflation contributed significantly to the overall increase, rising 5.6% annually. Wheat and wheat flour prices saw slight monthly increases, but experienced a substantial year-over-year jump. This increase is likely linked to supply chain disruptions caused by flooding in Punjab, a key wheat-producing region.
Prices for rice Basmati increased slightly, while rice Irri-6 saw a slight decrease. Eggs experienced a 6% price increase. A seasonal uptick was observed in the prices of eggs, sugar, ghee, cooking oil, and several pulses – mash, masoor, and moong – during October. However, chicken prices decreased significantly, and pulses gram also saw a slight reduction.
Year-Over-Year Price Shifts
Over the past year, the most substantial price increases were recorded for sugar, ghee, cooking oil, pulse moong, and eggs. Conversely, chicken, pulses gram, and mash experienced the most significant price decreases.
The Terms of Trade (ToT) worsened by 4% over the last month and by 13% compared to the same time last year. This deterioration in the ToT is expected to place an additional financial burden on poor and vulnerable households.
Frequently Asked Questions
What was the annual headline inflation rate in October 2025?
The CPI based Annual Headline Inflation recorded at 6.2% (YoY) in October 2025.
Which food items saw the largest price increases over the past year?
The largest increases were noted for sugar, ghee, cooking oil, pulse moong, and eggs.
What happened to chicken prices in October?
Chicken prices decreased significantly in October compared to the previous month.
How might these economic trends affect household spending in the coming months?
