Let us dive into India’s inflation trends for 2025. We bring you a report on movements in the Consumer Price Index and the Wholesale Price Index over the last year.
In 2025, India experienced a largely benign inflation environment. CPI was at 4.26 per cent in January and steadily softened over the months. By June, inflation declined to 2.1 per cent. This was well within the Reserve Bank of India’s medium-term target of 4 per cent, with a tolerance band of plus or minus 2 per cent.
The downward trend continued into the second half of the year, with headline CPI reaching historic lows of around 0.25 per cent in October. In November, inflation edged up slightly to 0.71 per cent, still reflecting broad-based price stability.
The RBI also revised its CPI inflation forecast for the Financial Year 2025-26 downward from 2.6 per cent to 2 per cent. Against this backdrop, the RBI cut the policy repo rate by 25 basis points to 5.25 per cent in December. It maintained a neutral stance to balance growth and inflation.
Wholesale inflation also mirrored this moderation. WPI inflation eased from 2.31 per cent in January to a provisional minus 0.32 per cent in November 2025, underscoring overall softening price pressures across the economy.
