Page 17 - Policy Economic Report - November 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• The decline in headline inflation and food inflation during the month of October, 2025 is mainly
attributed to full month’s impact of decline in GST, favourable base effect and to drop in inflation
of Oils and fats, Vegetables, Fruits, Egg, Footwear, Cereals and products, Transport and
Communication etc.

• Rural Inflation: A decrease in headline and food inflation in rural sector observed in October,
2025. The headline inflation is -0.25% (Provisional) in October, 2025 while it was -1.07% in
September, 2025. The CFPI based food inflation in rural sector is observed as -
4.85% (Provisional) in October, 2025 in comparison to -2.22% in September, 2025.

• Urban Inflation: A decrease from 1.83% in September, 2025 to 0.88% (Provisional) in October,
2025 is observed in headline inflation of urban sector. Decrease is also observed in food inflation
from -2.47% in September, 2025 to -5.18% (Provisional) in October, 2025.

• Housing Inflation: Year-on-year Housing inflation rate for the month of October, 2025 is
2.96% (Provisional). Corresponding inflation rate for the month of September, 2025 was
2.98%. The housing index is compiled for urban sector only.

• Education Inflation: Year-on-year Education inflation rate for the month of October, 2025 is
3.49% (Provisional). Corresponding inflation rate for the month of September, 2025 was 3.44%. It
is combined education inflation for both rural and urban sector.

• Health Inflation: Year-on-year Health inflation rate for the month of October, 2025 is 3.86%
(Provisional). Corresponding inflation rate for the month of September, 2025 was 4.39%. It is
combined health inflation for both rural and urban sector.

• Transport & Communication: Year-on-year Transport & communication inflation rate for the
month of October, 2025 is 0.94% (Provisional). Corresponding inflation rate for the month
of September, 2025 was 1.82%. It is combined inflation rate for both rural and urban sector.

• Fuel & light: Year-on-year Fuel & light inflation rate for the month of October, 2025 is
1.98% (Provisional). Corresponding inflation rate for the month of September, 2025 was also
1.98%. It is combined inflation rate for both rural and urban sector.

Manufacturing PMI – India

• The HSBC Flash India Composite Output Index, which measures the combined performance of India’s
manufacturing and services sectors, fell to 59.9 in November from 60.4 in October, according to data
released by S&P Global.

• Manufacturing reported the steepest slowdown. The flash India Manufacturing PMI fell to a nine-
month low of 57.4 from 59.2 in October, citing weaker factory production and softer new business
inflows.

• Services activity offered some support, rising to 59.5 from October’s 58.9. However, new export
orders across both sectors rising at the slowest pace since March, reflecting the drag from the U.S.
decision to impose 50% tariffs on certain imports from India.

• A reading above 50 indicates economic expansion, while one below 50 shows contraction in the
manufacturing, services, or construction sectors. A reading of exactly 50 signifies no change.

November 2025 Page | 16