Retail inflation drops to 4-month low of 5.22% in December: government
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Retail inflation in India eased to a four-month low of 5.22% in December, down from 5.48% in November, as per government data released on Monday.
The moderation was attributed to declining prices in the food basket.
According to data from the Consumer Price Index (CPI), inflation stood at 5.69% in December 2023. The food basket inflation showed a significant reduction, falling to 8.39% in December compared to 9.04% in November and 9.53% in the same period last year.
The National Statistics Office (NSO) highlighted that December’s overall CPI and food inflation were the lowest recorded in the past four months.
Earlier, the Reserve Bank of India had revised its inflation projection for the current fiscal year, raising it to 4.8% from 4.5%. The central bank also noted that persistent food price pressures were expected to keep headline inflation elevated during the December quarter.
Inflation, measured by CPI, had climbed steadily earlier in the year, with an average of 3.6% during July-August, increasing to 5.5% in September, and reaching 6.2% in October. The recent dip in December offers some relief amid concerns about inflationary pressures in the economy.