India retail inflation rate struck an eight-year low in September, while wholesale prices were nearly unchanged on year, reported New Delhi on Tuesday

India's headline consumer price index (CPI) rose a subdued 1.54% on year in September, easing from a 2.07% on-year gain in August, and possibly opening the door to future interest-rate cuts by the Reserve Bank of India (RBI).

India' food prices fell 2.28% on year in September, a u-turn from double-digit on-year gains of earlier this year, reported the National Statistics Office (NSO).

"The decline in headline inflation and food inflation during the month of

September, 2025 is mainly attributed to favorable base effect and to decline in inflation of vegetables, oil and fats, fruits, pulses and products, cereal and products, egg, fuel and light (bills)," said the NSO.

In contrast, Indians faced housing costs up 3.98% on year in September, added the NSO.

The subcontinent also experienced tepid wholesale prices in September.

India's wholesale price index (WPI) increased by a scant 0.13% on year in September, down from 0.52% on-year rise in August, reported the Ministry of Commerce and Industry (MCI).

In September, the WPI of primary articles declined by 3.32% on year, while that of fuel and power fell by 2.58%. However, the WPI for manufactured products rose 2.33% on year in September, added officials.

The RBI, the nation's central bank, has an inflation target of 4% on year, within a band of plus or minus 2%.

The next RBI policy meeting is from Dec. 3 through Dec. 5.

At the RBI's most-recent policy session, from Sept. 29 through Oct. 1, the central bank kept its key policy rate unchanged at 5.50%, citing robust Indian economic expansion, with the nation's gross domestic product (GDP) expected to grow by 6.8% in the year started April 1.