The retail inflation in January fell to a five-month low of 4.31 per cent, mainly due to a decline in the prices of vegetables, eggs, cereals and pulses. Measured by the Consumer Price Index, the retail inflation stood at 5.22 per cent in December and 5.1 per cent in January 2024, according to data released by the Ministry of Statistics and Programme Implementation. On a decline since October, the previous low inflation was in August 2024 at 3.65 per cent. It stood at 5.48 per cent in November, 6.21 per cent in October and 5.49 per cent in September.
The rural inflation in January was slightly higher at 4.64 per cent while it was 3.87 per cent in urban areas. There has been a sharp decline of 237 basis point in food inflation in January at 6.02 per cent compared to 8.39 per cent in December 2024. It stood at 9.04 per cent in November, 10.87 per cent in October, 9.24 per cent in September and 5.66 per cent in August. Rural areas experienced a food inflation rate of 6.31 per cent while urban parts saw a slightly lower rate of 5.53 per cent. The top five items showing the highest year-on-year inflation in January were coconut oil (54.20 per cent), potato (49.61 per cent), coconut (38.71 per cent), garlic (30.65 per cent) and peas (30.17 per cent).