Overview

• Food inflation turned negative for a fourth month, with the Consumer Food Price Index at -2.28% and vegetable prices down about 21% year on year.
• Wholesale inflation also cooled, with WPI easing to 0.13% in September as food and fuel costs softened, Commerce Ministry data showed.
• Core inflation rose to roughly 4.5%, lifted by surging gold prices and firmer housing costs, highlighting a divergence from the benign headline print.
• Inflation varied sharply across states, with Kerala near 9% while several states recorded near-zero or negative readings, underscoring regional dispersion.
• Economists expect GST rate cuts implemented on September 22 to pull October CPI even lower, and many see scope for an RBI rate cut as early as December.