Highlights

  • Retail inflation slows to 5.22% in December
  • Food basket inflation drops to 8.39%
  • RBI raised inflation projection to 4.8%

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Retail inflation eases to 5.22% in December, food inflation drops

India's retail inflation slowed to a four-month low of 5.22% in December, primarily due to easing food prices, according to CPI data from the National Statistics Office. Food inflation dropped to 8.39%, providing some relief. 

Retail inflation eases to 5.22% in December, food inflation drops

Retail inflation slowed to a four-month low of 5.22 percent in December compared to 5.48 pc in November, mainly due to the easing of prices in food basket, according to government data released on Monday.

The inflation based on Consumer Price Index (CPI) was 5.48 percent in November and 5.69 percent in December 2023.

According to CPI data released by the National Statistics Office (NSO), the inflation in the food basked reduced to 8.39 percent in December. It was 9.04 percent in November and 9.53 percent in December 2023.

“The CPI (General) and food inflation in December 2024 are the lowest in the last four months," the NSO said.

Last month, the Reserve Bank of India raised the inflation projection for the current fiscal year to 4.8% from 4.5%. It also said the lingering food price pressures are likely to keep headline inflation elevated in the December quarter.

The CPI-based headline inflation increased from an average of 3.6% during July-August to 5.5% in September and further to 6.2% in October 2024.

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