India's Retail Inflation Rate Eases To 5.22 Per Cent In December, Food Inflation At 8.39 Per Cent

The current inflation figure remained within the Reserve Bank of India (RBI)’s tolerance band of 2 to 6 per cent. Notably, the official release showed provisional figures for December.

The data showed that inflation rate for urban areas touched 4.58 per cent in December 2024, against 4.89 per cent logged in the preceding November month

Source : ABPLIVE AI

The retail inflation rate in India ease slightly in December, official data released on Monday showed. The data, released by the National Statistics Office under the Ministry of Statistics and Programme Implementation, stated that retail inflation rate, measured by the Consumer Price Index (CPI) stood at 5.22 per cent in December 2024.

Comparatively, the CPI for Novemeber 2024 was 5.48 per cent. This also marked a significant departure from the 14-month high inflation figure of 6.21 per cent clocked in October 2024.

The current inflation figure remained within the Reserve Bank of India (RBI)’s tolerance band of 2 to 6 per cent. Notably, the official release showed provisional figures for December.

The data showed that inflation rate for urban areas touched 4.58 per cent in December 2024, against 4.89 per cent logged in the preceding November month. Meanwhile, the inflation figure for rural regions improved to 5.76 per cent in the month under review, in comparison to 5.95 per cent reported in November 2024.

Food Inflation

Meanwhile, the All India Consumer Food Price Index (CFPI) touched 8.39 per cent in December, easing from 9.04 per cent clocked in November. The release noted, "The top five items showing highest year on year Inflation at All India level in December 2024 are Peas
[Vegetables] (89.12 per cent), Potato (68.23 per cent), Garlic (58.17 per cent), coconut oil (45.41 per cent) and Cauliflower (39.42 per cent). The key items having lowest year on year inflation in December, 2024 are jeera (-34.69 per cent), ginger (-22.93 per cent), dry chillies (-10.32 per cent), LPG (excl. conveyance) (-9.29 per cent)."

The data found that inflation declined majorly in vegetables, sugar and confectionary, pulses and products, and cereals, among other items. The report noted that retail inflation rate and food inflation both continued to decline between December 2023 and May 2024. "The CPI(General) reached to its lowest point during this period in July 2024. However, the CPI(General) and food inflation in December, 2024 is the lowest in last four months," the release said.