India’s retail inflation fell to a four-month low of 5.22% in December 2024 from 5.48% the previous month, according to data released by the Ministry of Statistics and Programme Implementation on Monday.
This was driven by a drop in food prices from 9.04% in November to 8.4% in December.
Among key categories, vegetable inflation decreased to 26.56% from 29.33%, pulses inflation moderated to 3.83% from 5.41%, and fuel and light inflation improved to -1.39% from -1.83%.
However, December marks the fourth consecutive month of inflation exceeding 5%.
The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%. In October, the inflation rate crossed the tolerance cap of 6% for the first time since August 2023.
Overall, consumer prices for urban residents eased to 4.6% in December as opposed to 4.9% in November. Inflation for rural consumers was 5.8% in December, slightly lower than the 5.95% in the previous month.
Buy an annual Scroll Membership to support independent journalism and get special benefits.
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!