India’s retail inflation eased to 5.22 per cent in December, down from 5.48 per cent in November, according to the Ministry of Statistics and Programme Implementation (MoSPI).
This marks a continued decline from October’s 6.21 per cent, when inflation exceeded the Reserve Bank of India’s target range of 2-6 per cent, which also accounts for the highest inflation number in 2024.
The data highlighted a rural-urban divide, with rural inflation at 5.76 per cent compared to 4.58 per cent in urban areas.
Food inflation also moderated further, dropping to 8.39 per cent in December from 9.04 per cent in November. Rural food inflation was recorded at 8.65 per cent, while urban areas saw a rate of 7.90 per cent. The easing of food prices was a significant contributor to the decline in the Consumer Price Index (CPI).
Retail inflation in FY25 hit its lowest point in July at 3.54 per cent. Here’s the movement of CPI throughout the fiscal year:
Housing inflation, which focuses solely on the housing sector, dropped slightly to 2.71 per cent in December from 2.87 per cent in November.
The top five items with the highest year-on-year inflation at the all-India level in December 2024 were peas (89.12 per cent), potatoes (68.23 per cent), garlic (58.17 per cent), coconut oil (45.41 per cent), and cauliflower (39.42 per cent). Items with the lowest year-on-year inflation included jeera (-34.69 per cent), ginger (-22.93 per cent), dry chilies (-10.32 per cent), and LPG (-9.29 per cent), according to the MoSPI press release.
