India's Retail Inflation Falls to 5-Month Low of 4.31% in January

The decline marks the third consecutive month of easing inflation, driven by a drop in food prices, but remains above the Reserve Bank of India's 4% target.

• India's Consumer Price Index (CPI) inflation dropped to 4.31% in January 2025, its lowest level since August 2024, following a December rate of 5.22%.
• Food price inflation saw a significant decline, from 7.69% in December to 5.68% in January, with notable price drops in vegetables, eggs, and spices.
• Despite the overall decline, prices for cereals, milk, meat, fruits, and other essentials rose slightly, along with marginal increases in housing, transport, and communication costs.
• Kerala recorded the highest inflation rate among large states at 6.76%, followed by Odisha at 6.05%, while Telangana reported the lowest at 2.22%.
• The Reserve Bank of India recently cut its repo rate to 6.25%, citing the inflation slowdown, and signaled potential further monetary easing to support economic growth.

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