Inflation Falls as Food Prices Drop

Retail inflation in India slowed to 4.31% in January, primarily due to decreased food prices. The Consumer Price Index (CPI)-based inflation had been higher in the previous month and the same period last year. The Reserve Bank of India targets a 4% inflation rate, with a 2% margin.

In January, India's retail inflation rate eased to 4.31%, attributed mainly to a decline in food prices, as revealed by official statistics on Wednesday.

The Consumer Price Index (CPI)-based retail inflation figure was comparatively higher at 5.22% in December and stood at 5.1% in January 2024.

Food basket inflation reduced significantly to 6.02%, down from 8.39% in December and 8.3% during the same month last year. The Reserve Bank of India (RBI) aims to maintain retail inflation around 4%, with a permissible range of 2% on either side.

(With inputs from agencies.)