
India’s retail inflation rate, measured by the Consumer Price Index (CPI) slowed to a four-month low of 5.22 per cent in December compared to 5.48 per cent in November, mainly due to the easing of prices in food basket, according to government data released on Monday.
The inflation based on Consumer Price Index (CPI) was 5.48 per cent in November and 5.69 per cent in December 2023. This indicated a steady upward trend in inflation during the last two months of 2023, as consumers faced higher prices for various goods and services.
Food basket inflation reduced to 8.39 per cent in December
According to CPI data released by the National Statistics Office (NSO), the inflation in the food basket reduced to 8.39 per cent in December. It was 9.04 per cent in November and 9.53 per cent in December 2023. "The CPI (General) and food inflation in December 2024 are the lowest in the last four months," the NSO said.
Last month, the Reserve Bank of India raised the inflation projection for the current fiscal year to 4.8 per cent from 4.5 per cent. It also said the lingering food price pressures are likely to keep headline inflation elevated in the December quarter.
The CPI-based headline inflation increased from an average of 3.6 per cent during July-August to 5.5 per cent in September and further to 6.2 per cent in October 2024.
(With PTI inputs)