RETAIL INFLATION DIPS TO 5.1% IN JAN '24, RED SEA RISKS AT LARGE

The RBI has maintained its FY24 (year ending March 2024) CPI inflation forecast of 5.4 per cent y-o-y, with its forecast for Q4 (January-March 2024) at 5.0 per cent (from 5.2 per cent previously)

- NIVEDITA MUKHERJEE

India's retail inflation measured by the Consumer Price Index (CPI) eased to 5.10 per cent in January, 2024, on the back of softening prices in both food and non-food components, official data showed on Monday. Though inflation is down to a three-month low of 5.1 per cent from 5.7 per cent in December 2023, it still reigns high, allowing room for the RBI to hold interest rates steady till at least the June policy review.

A close look at the data shows food inflation moderated to 8.3 per cent from 9.5 per cent. Vegetables inflation eased slightly but remained elevated at 27 per cent while foodgrains inflation (cereals plus pulses) softened by 200 basis points. Fuel prices continued to fall on-year, but the pace of the decline slowed.