The central government has released data on retail inflation in India. Some states contributed more to the index than others. Know how costly your state became.

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%.

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

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).

India's retail inflation drops to 4.31% in January, with food prices rising 6%, marking slowest uptick since August 2024.

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 slowed to a five-month low in January as food price inflation eased, boosting the odds of another rate cut in the South Asian economy where growth is slowing amid the escalating threat of a global trade war.