This significant decrease in inflation is a positive sign for the Reserve Bank of India, which recently reduced the repo rate by 25 basis points to 6.25%. In October, retail inflation in India had surged to a 14-month high of 6.2%, with food inflation reaching a 15-month peak of 10.9%.

A Reuters poll had earlier projected January inflation at 4.6 per cent, indicating a continued decline that brings inflation closer to the middle of the RBI's tolerance band of 2-6 per cent

India's retail inflation eased to 4.31% in January 2025, down from 5.22% in December, primarily due to slowing food price rises. This decline was better than the Reuters poll estimate of 4.6% and offers relief to households heavily impacted by food costs.

The Consumer Price Index (CPI)-based retail inflation slowed to a five-month low of 4.31 per cent in January from 5.22 per cent in December, aided by a slowdown in food prices, data released by the Ministry of Statistics and Programme Implementation (MoSPI) said on Wednesday.

U.S. inflation accelerated in January, rising 3% year-over-year, fueled by higher grocery, gas, and rent prices. The Federal Reserve may delay interest rate cuts, while Trump’s proposed tariffs add uncertainty to economic forecasts.

India's retail inflation eased to a five-month low of 4.31% in January from 5.22% in December as food price inflation declined, government data released on Wednesday showed. Annual retail inflation in January was lower than economists' estimate of 4.