India Witnesses Record Low Inflation Amid Strong Growth

The Economic Survey 2025-26 reveals that India has achieved the lowest inflation rate since the inception of the CPI series, with a significant decline in headline inflation averaging 1.7% by December 2025. This decline in inflation has occurred alongside an 8% GDP growth rate, showcasing India's robust macroeconomic performance and effective inflation management. The moderation in inflation is especially pronounced in food and fuel prices, contributing to the country's overall economic stability. Globally, inflation has also seen a downward trend from 8.7% in 2022 to 4.2% in 2025, amidst easing energy and food prices. The outlook foresees inflation remaining within target ranges, backed by stable agricultural and global economic conditions, though risks remain from currency volatility and global uncertainties.

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