General Studies · Critical Reasoning
Read the information given below and determine which of the options can be properly inferred from the passage. Statement: In a significant relief to consumers and policymakers, India's retail inflation dropped sharply to 1.54% in September 2025, its lowest level since June 2017. As per the Ministry of Statistics and Programme Implementation, the fall was mainly driven by continued deflation in food prices and favorable base effects. Compared to 2.07% in August, the figure indicates a steady decline in price pressures, particularly for essential commodities. Economists believe this trend reflects price stability, but also caution that weak rural demand might limit economic recovery if consumption doesn't improve soon.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Ministry of Statistics expects inflation to reach double digits soon.
- 2The inflation rise in August caused concern for consumers.
- 3The government has increased food prices to control inflation.
- 4India's inflation fell mainly due to reduced food prices and base effects from the previous year.✓
Correct answer
India's inflation fell mainly due to reduced food prices and base effects from the previous year.
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