January 13th 2025.
The latest data released by the government on Monday shows that retail inflation in December has hit a four-month low of 5.22%, down from 5.48% in November. This drop can be attributed to the decrease in prices in the food sector, according to the data released by the government. The Consumer Price Index, which measures inflation, was at 5.48% in November and 5.69% in December of the previous year.
The National Statistics Office also released its CPI data, which showed a decrease in the inflation rate of the food basket to 8.39% in December. In comparison, it was at 9.04% in November and 9.53% in December of the previous year. The NSO stated, "The CPI and food inflation in December 2024 has been the lowest in the last four months."
It is worth noting that in the previous month, the Reserve Bank of India had raised the inflation projection for the current fiscal year to 4.8% from 4.5%. The central bank had also predicted that the lingering pressure from food prices could keep the headline inflation elevated in the December quarter. The CPI-based headline inflation has been on the rise, from an average of 3.6% in July and August to 5.5% in September and further to 6.2% in October of the previous year.
In conclusion, the latest data released by the government and the NSO shows a decrease in retail inflation, mainly due to the easing of prices in the food sector. However, the RBI has raised its inflation projection and warned of continued pressure from food prices in the coming months. This indicates that the inflation rate may remain elevated in the December quarter. This is an important factor to consider for the economy and consumers alike.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
