In a significant relief for consumers, India’s retail inflation eased to 4.31% in January which marked a sharp decline from 5.22% in December, according to government data released on Monday.
The drop in inflation is primarily attributed to lower food prices and stable core inflation, offering a positive outlook for household budgets. This marks the lowest retail inflation rate in the past four months, bringing it closer to the Reserve Bank of India’s targeted comfort zone of 4%.
The Consumer Price Index (CPI)-based retail inflation was 5.22 per cent in December, and 5.1 per cent in January 2024. The inflation in the food basket was 6.02 per cent, lower than 8.39 per cent in December and 8.3 per cent in the year-ago month. The Reserve Bank of India (RBI) has been asked to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
More details to be added.
