India records one of the sharpest declines in headline inflation among major emerging economies

Economic Survey has noted that India recorded the lowest inflation rate since the beginning of the CPI series, with April-Dec 25 average headline inflation coming in at 1.7%. The moderation in retail inflation can primarily be attributed to the general disinflationary trend in food and fuel prices, which together account for 52.7 per cent of Indias Consumer Price Index (CPI) basket. Notably, among major Emerging Markets & Developing Economies (EMDEs), India has recorded one of the sharpest declines in headline inflation in 2025 over 2024, amounting to about 1.8 percentage points.

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