Dec retail inflation eases to 4-month low at 5.22% on falling food prices

India’s retail inflation rate, as measured by the Consumer Price Index (CPI), was 5.22 percent in December, down slightly from 5.48 percent in November. November’s CPI declined from a 14-month high of 6.21 percent in October, bringing it back within the Reserve Bank of India’s (RBI) tolerance zone of 2 to 6%.

The decline in December’s inflation was mostly due to a significant drop in prices of important food commodities such as vegetables, legumes, sugar, and cereals. The Ministry stated that considerable decreases were noted in areas such as vegetables, beans and products, sugar and confectionary, personal care, and cereals.

Rural inflation was recorded at 5.76 percent, while urban inflation was lower at 4.58%. The Consumer Food Price Index (CFPI), which monitors food inflation, rose 8.39 percent year on year in December 2024. Rural food inflation was somewhat higher at 8.65%, while urban regions had a rate of 7.90%.

Among the food products, peas topped the jump with an astounding year-on-year inflation rate of 89.12%, followed by potatoes at 68.23%, garlic at 58.17%, coconut oil at 45.41%, and cauliflower at 39.42%. Conversely, some items showed deflation, with jeera (cumin) experiencing the steepest decline at -34.69 per cent, followed by ginger at -22.93 per cent, dry chillies at -10.32 per cent, and LPG (excluding conveyance) at -9.29 per cent, MoSPI said.