Inflation Declines to Five-Month Low: A Boost for the Economy

Retail inflation hit a five-month low of 4.31% in January, driven by lower prices of vegetables, eggs, and pulses. This decline follows a rate cut by the Reserve Bank to encourage growth. Inflation rates varied across states, with the highest in Kerala and the lowest in Delhi.

In January, retail inflation fell to a five-month low of 4.31%, primarily due to reduced prices of vegetables, eggs, and pulses, according to data from the National Statistics Office (NSO).

Following this trend, the Reserve Bank enacted a significant rate cut after five years to stimulate economic growth, as inflation targets were met comfortably.

While inflation decreased across both rural and urban sectors, varying rates persisted among states, with Kerala reporting the highest and Delhi the lowest inflation rates.

(With inputs from agencies.)