Business

India’s CPI Inflation Drops To 5-Month Low Of 4.31% In January

India’s retail inflation, based on the Consumer Price Index (CPI), eased to 4.31% in January, marking a five-month low. This decline was driven by a drop in vegetable and pulse prices, which relieved household budgets.

The January inflation rate continues a steady decline from a peak of 6.21% in October 2024. It fell to 5.48% in November and 5.22% in December. Food inflation, a key driver, dropped to 6.02% in January—the lowest since August 2024.

The reduction in inflation was primarily due to price decreases in vegetables, eggs, pulses, cereals, clothing, and health-related services.

Also Read: Indian Stock Market Opens Lower Amid Concerns Over Trump’s Tariff Threats

However, some items saw a significant year-on-year price increase. Coconut oil surged by 54.2%, followed by potatoes at 49.6%, and coconut at 38.7%. Garlic and peas also saw inflation at 30.65% and 30.17%, respectively.

On the other hand, the lowest inflation was recorded for zeera (-32.25%), ginger (-30.92%), and dry chillies (-11.27%). Fuel and light inflation stood at -1.38%, slightly lower than the previous month.

The Reserve Bank of India (RBI) has responded by cutting its policy rate by 0.25% to 6.25% to support growth amid global uncertainty. Governor Sanjay Malhotra explained that inflation has eased and is expected to continue moderating, aligning with the RBI’s target.

With inflation under control, the RBI’s decision to maintain a neutral stance allows more flexibility to support growth while monitoring inflation closely. This shift paves the way for easier credit, encouraging businesses and consumers to drive economic expansion.

Shibra Arshad

Recent Posts

Trump Set to Sell His Tesla Car As Clash With Elon Musk Escalates

US President Trump is reportedly planning to sell his Tesla car, purchased in March to…

6 mins ago

Musk-Trump Fallout Threatens NASA And Pentagon Operations: Report

A recent fued between Elon Musk and former US President Donald Trump has raised serious…

40 mins ago

Rajeshwar Singh Honoured With ‘Excellence In Political & Public Life’ Award At House Of Lords

Rajeshwar Singh was honoured with the ‘Excellence in Political and Public Life’ Award at the…

42 mins ago

EaseMyTrip Launches ‘EMT Invest’ To Back Profitable Businesses: CEO Nishant Pitti

India’s leading travel tech company, EaseMyTrip, has launched a new investment platform named ‘EMT Invest’,…

48 mins ago

MyGov Launches Exciting Contests To Celebrate 11 Years Of Transformative Governance

Marking 11 years of transformative governance, citizen engagement platform MyGov has launched a series of…

3 hours ago

President Murmu And PM Modi Extend Eid Al-Adha Wishes, Call For Unity And Service

On Saturday, President Droupadi Murmu and PM Modi extended warm wishes to citizens on occasion…

4 hours ago