NEW DELHI: India’s retail inflation is expected to fall further in October, supported by a high base effect, easing food prices, and the full impact of recent GST reforms, a new report has said.

The data compiled by Union Bank of India suggests that inflationary pressures will only rise gradually in the coming months.

The bank said its projection for October’s Consumer Price Index (CPI) inflation is currently tracking below 0.50 per cent.

It also expects food inflation to drop sharply and remain in the negative zone during the winter months, as the impact of recent floods has been limited.

Inflation has already eased to an eight-year low, helped by lower food prices and the rationalisation of GST rates.

The report lowered its inflation forecast for FY26 to 2.6 per cent from the earli

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