Retail inflation falls to 5-month low of 4.3% in Jan: Govt data

Industrial output growth slows to 3-month low of 3.2% in December

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NEW DELHI: Continuing its downward trend, India's retail inflation declined to a five-month low of 4.31 per cent in January, primarily due to a decrease in the prices of vegetables, eggs, and pulses, according to data released by the National Statistical Office (NSO).

The Consumer Price Index (CPI)-based inflation stood at 5.22 per cent in December and 5.1 per cent in January 2024. The last time inflation was lower was in August 2024, when it stood at 3.65 per cent. The CPI has been on a steady decline since October.

Food inflation, a key driver of overall inflation, eased to 6.02 per cent in January, the lowest since August 2024, when it was recorded at 5.66 per cent.

"The significant decline in headline inflation and food inflation during January 2025 is mainly attributed to a decrease in the prices of vegetables, eggs, pulses, cereals, education, clothing, and healthcare," the NSO stated in its report.

A notable 91 basis points drop in headline inflation was observed in January 2025 compared to the previous month, making it the lowest year-on-year inflation since August 2024.

Among the items experiencing the highest year-on-year inflation were coconut oil (54.2 per cent), potato (49.61 per cent), coconut (38.71 per cent), garlic (30.65 per cent), and peas (30.17 per cent).