Inflation: Tamed and Anchored

  • Record Low Inflation: India achieved its lowest inflation rate since the Consumer Price Index (CPI) series began, with April-Dec ‘25 average headline inflation at 1.7%.
  • Drivers of Disinflation: Moderation driven by food and fuel prices, which constitute 52.7% of the total CPI basket.
  • Global Standing: India recorded one of the sharpest inflation declines among major emerging market and developing economies (EMDEs) in 2025, dropping by approximately 1.8 percentage points compared to 2024.

Analysis: India has effectively tamed price volatility to reach historic lows, outperforming global emerging market peers through successful management of the volatile food and fuel ....

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