India’s retail inflation, as measured by the Consumer Price Index (CPI), fell to 4.31 per cent in January 2025, down from 5.22 per cent in December 2024, according to government data released on Wednesday (12 January).

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.

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%.

The inflation in the food basket was 6.02 per cent, lower than 8.39 per cent in December and 8.3 per cent in the year-ago month.

India's retail inflation drops to 4.31% in January, with food prices rising 6%, marking slowest uptick since August 2024.

Food inflation, based on the Consumer Food Price Index (CFPI), eased to a five-month low of 6.02 per cent in January from 8.39 per cent in December, the data showed.

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.

The central government has released data on retail inflation in India. Some states contributed more to the index than others. Know how costly your state became.