India’s retail inflation slowed to 5.1% in January this year from 5.69% in December 2023, bringing some relief to household budgets, according to official figures released today.

Food inflation, which accounts for close to half of the overall consumer price index (CPI), fell to 8.3% in January from 9.05% in December.

However, the prices of vegetables, pulses and spices registered a double-digit growth during the month, though there was some consolation as cooking oil prices continued to decline during the month.

The data show that vegetables prices shot up by as much as 27.03%, which was lower than the 31.34% during December.

There was no relief as far as pulses are concerned as they turned costlier by 19.54%, while spices were dearer by 16.36%. The prices of cereals went up by 7.83% in January as against 9.53% in December.

The consumer price inflation is now above the 4% midpoint of the RBI’s 2%-6% target range and is the main reason why the RBI is not going for a cut in interest rates to spur economic growth.

The central bank is keen to keep inflation under control to ensure stability and has held the repo rate steady at 6.5% for six consecutive times in-a-row in its bi-monthly monetary policy reviews.

(Source: IANS)

- Edited for style

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