India’s CPI Inflation Drops to 4.31% in January, Lowest in 5 Months

India’s retail inflation eased to a five-month low of 4.31 percent in January from 5.22 percent in December, as the rate of increase in food prices slowed. According to data released by the Ministry of Statistics and Programme Implementation (MoSPI), inflation in rural areas stood at 4.64 percent compared to 3.87 percent in urban regions.

The food inflation rate for the last month, based on the All India Consumer Food Price Index (CFPI), is provisionally reported at 6.02 percent, down from 8.39 percent recorded in December and 9.04 percent registered in November. The corresponding food inflation rate for rural areas stood at 6.31 percent, and for urban areas, it was reported at 5.53



percent.

According to MoSPI, the decline in headline inflation and food inflation during the month of January is mainly attributed to the decline in inflation of vegetables, eggs, pulses and products, cereals and products, education, clothing, and health. The ministry also said that the headline and food inflation were lowest after August 2024.

India’s retail inflation in January remained under the central bank’s target. The Reserve Bank of India (RBI) aims to keep inflation within a range of 2 to 6 percent, with a medium-term target of 4 percent. The RBI has forecast inflation at 4.2 percent for the fiscal year 2025-26.