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GST reforms may reduce retail inflation by 35 basis points
The Sunday Guardian
|December 14, 2025
The decline in Consumer Price Index (CPI) or retail inflation due to massive GST rate rationalisation has been around 25 bps so far in the September-November 2025 period, according to estimates put forth by SBI Research.
GST rationalisation has led to a reduction in CPI inflation in India.
SBI Research had earlier estimated that the impact of GST on CPI could be around 85 basis points.
"However, item-by-item calculation now shows that the decline in CPI inflation due to GST has been around 25 basis points so far in the Sep-Nov’25 period," the SBI Research report read.
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