According to the data, the top five items showing the highest year on year inflation were coconut oil (54.2 per cent), potato (49.61 per cent), coconut (38.71 per cent), garlic (30.65 per cent), peas (30.

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 drop in inflation is primarily attributed to lower food prices and stable core inflation, offering a positive outlook for household budgets.

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%.

India’s retail inflation, as measured by the Consumer Price Index (CPI), fell to 4.31 per cent in January 2025, down from 5.22 per cent in December 2024, according to government data released on Wednesday (12 January).

Food inflation, based on the Consumer Food Price Index (CFPI), eased to a five-month low of 6.02 per cent in January from 8.39 per cent in December, the data showed.

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 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.

Retail inflation in India eased to a five-month low of 4.3% in January due to moderating vegetable prices, while industrial output growth slowed to 3.2% in December, largely due to sluggish performance in the manufacturing sector.