India’s retail inflation, based on the Consumer Price Index (CPI), for January stood at 4.31 per cent, dropping significantly from 5.22 per cent in December, data released by the Ministry of Statistics & Programme Implementation showed on Monday. CPI inflation in October had reached a 14-month high of 6.21 per cent.

India's retail inflation eased to a five-month low of 4.31% in January from 5.22% in December as food price inflation declined, government data released on Wednesday showed. Annual retail inflation in January was lower than economists' estimate of 4.

Dec retail inflation eased to 4-month low at 5.22 per cent, while industrial output in November grew to 5.2 per cent

This significant decrease in inflation is a positive sign for the Reserve Bank of India, which recently reduced the repo rate by 25 basis points to 6.25%. In October, retail inflation in India had surged to a 14-month high of 6.2%, with food inflation reaching a 15-month peak of 10.9%.

India's retail inflation slowed to a five-month low in January as food price inflation eased, boosting the odds of another rate cut in the South Asian economy where growth is slowing amid the escalating threat of a global trade war.