In September, Consumer Price Index (CPI) inflation dropped to an eight-year low of 1.5%, while Wholesale Price Index (WPI) inflation eased to 0.1%. The decline in retail inflation was driven by a favourable base effect and lower food prices.ICICI Bank notes that while softer inflation is expected, the Monetary Policy Committee’s rate decisions will hinge on growth. If growth weakens, the MPC may act to support it. Gaura Sengupta of IDFC First Bank adds that rate cuts will be considered only with sustained tariff pressures or weak consumption despite GST cuts.