India's Inflation Just Hit a STUNNING Record Low – Your Investments Could Be Affected!

India's consumer inflation for October reached a record low of 0.25%, according to data from the Ministry of Statistics and Programme Implementation. This is the lowest rate in the current Consumer Price Index (CPI) series, a sharp drop from September's 1.44%. The decline was driven by falling food prices, which hit –5.02%, and the full impact of recent Goods and Services Tax (GST) reductions. A favourable base effect and lower prices in categories like oils, vegetables, and transport also contributed. While most states saw low inflation, some like Kerala, Punjab, and Karnataka reported positive rates, whereas Uttar Pradesh, Madhya Pradesh, and Telangana witnessed deflation.

Impact This news is highly significant for the Indian stock market and economy. Lower inflation can lead to a stable economic environment, influence Reserve Bank of India's monetary policy, and boost consumer/business confidence, positively impacting corporate earnings and market growth. Rating: 8/10

Difficult Terms Explained: Consumer Price Index (CPI): Tracks average price changes in a basket of consumer goods and services. Headline Inflation: The raw inflation rate including all items in the CPI. Basis Points: A unit of measure for percentage change; 1 basis point = 0.01%. Goods and Services Tax (GST): An indirect tax on goods and services in India. Favourable Base Effect: When current inflation appears lower due to comparison with a previous period of high inflation. Deflationary Trends: A general decrease in the price level of goods and services.