India&rsquo;s retail inflation rate, based on the Consumer Price Index, fell to a five-month low of 4.31% in January as prices of vegetables and pulses eased during the month bringing respite to household budgets, according to figures released by the Ministry of Statistics on Wednesday.
The easing of inflation reflects a steadily declining trend after having touched a 14-month high of 6.21% in October. CPI inflation had declined to 5.48% in November and 5.22% in December.
The food inflation at 6.02% in January 2025 is the lowest after August 2024.&nbsp;
&ldquo;The significant decline in headline inflation and food inflation during the month of January is mainly attributed to the decline in inflation of vegetables, egg, pulses, cereals, education, clothing and health,&rdquo; according to an official statement.
The top five items showing the highest year on year Inflation at the All India level in January are coconut oil (54.20%), potato (49.61%), coconut (38.71%), garlic (30.65%), peas [vegetables] (30.17%).
The key items having the lowest year-on-year inflation in January 2025 are Zeera (-32.25%), ginger (-30.92%), dry chillies (-11.27%), brinjal (-9.94%), LPG (excl. conveyance) (-9.29%).
The year-on-year fuel and light inflation rate for the month of January is -1.38%. The corresponding inflation rate for the month of December 2024 was -1.33% as fuel prices have been coming down.&nbsp;
RBI Governor Sanjay Malhotra announced on Friday a 25 basis cut in the policy rate from 6.5% to 6.25% in the monetary policy review to accelerate growth amid global uncertainties.
He said that inflation has declined and is expected to further moderate and gradually align with the RBI&rsquo;s target.
The monetary policy decision maintains a delicate balance between controlling inflation and pushing up the growth rate in a slowing economy,&nbsp;
The MPC also unanimously decided to continue with its neutral stance in monetary policy and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, Malhotra said.
Now with the retail inflation continuing with its downward trend, the RBI will have more headroom to follow a soft money policy to make more credit available to businesses and consumers which will propel economic growth.
&mdash;IANS

CPI inflation had declined to 5.48% in Nov & 5.22% in Dec (File Photo)

This fall will ease the burden of Indian household as the cost of pulses and vegetables will be lower

India's Retail Inflation Falls to 4.31% in January

This fall will ease the burden of Indian household as the cost of pulses and vegetables will be lower

February 12, 2025 | 17:50 IST