India’s December retail inflation eases to 5.22%, food inflation at 8.39%

According to the CNBC-TV18 Poll of economists, the January 2024 CPI was pegged at 5.3%. Inflation based on the Consumer Price Index (CPI) was at 5.48% in November 2024 and 5.69% in December 2024.

“The CPI (General) and food inflation in December 2024 is the lowest in the last four months,” the NSO said.

Food inflation for December came in at 8.39%, marginally higher than the poll projection of 8.3% but down from 9.04% in November 2024. Rural inflation was recorded at 5.76%, a decline from 5.95% in the previous month, while urban inflation eased to 4.58% from 4.83%.

Among key categories, vegetable inflation dropped to 26.56% from 29.33%, pulses inflation moderated to 3.83% from 5.41%, and fuel and light inflation improved to -1.39% from -1.83%.

Housing inflation stood at 2.71%, slightly lower than November’s 2.87%, while clothing and footwear inflation remained stable at 2.74% compared to 2.75% in the previous month.

The Reserve Bank of India (RBI) has been tasked by the government to ensure retail inflation remains at 4% with a margin of 2% on either side. The CPI data is mainly factored in by the RBI while making its bi-monthly monetary policy.

(This is a developing story. Check back for more details)