India’s Consumer Price Index (CPI) based retail inflation eased to 4.6 per cent in January from 5.22 per cent in December.This marks a decline of 91 basis points in headline inflation compared to the previous month, making it the lowest year-on-year inflation since August 2024.
Corresponding inflation rate for rural and urban are 6.31 per cent and 5.53 per cent, data from the Ministry of Statistics & Programme Implementation (MoSPI) said.
The significant decline in headline inflation and food inflation during the month of January, 2025 is mainly attributed to decline in inflation of vegetables, egg, pulses & products, cereals and products, education, clothing and health.
Further, the year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of January 2025 over January, 2024 is 6.02 per cent.
The data said a significant decline was observed in headline and food inflation in rural sector at 4.64 per cent (provisional) in January, 2025 compared to 5.76 per cent in December last.
The CFPI based food inflation in rural sector is observed as 6.31 per cent in January, 2025 in comparison to 8.65 per cent in December last.
In the urban sector, sharp decline from 4.58 per cent in December, 2024 to 3.87 per cent (Provisional) in January, 2025 is observed in headline inflation. Similar decline is observed in food inflation which has decreased from 7.9 per cent in December, 2024 to 5.53 per cent in January, 2025.
In terms of housing, the Housing inflation rate for January on year-on-year basis has been recorded at 2.76 per cent as compared to 2.71 per cent in December.
MoSPI also released the Quick Estimates of Index of Industrial Production (IIP) which stands at 3.2 per cent for December 2024 as compared to 5.2 per cent in November.
The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of December 2024 are 2.6 per cent, 3 per cent and 6.2 per cent ,respectively.
The top three positive contributors for the month of December are manufacture of basic metals (6.7 per cent), manufacture of electrical equipment (40.1 per cent) and manufacture of coke and refined petroleum products (3.9 per cent), data from the Ministry said.