CPI-based inflation eases to a five-year low of 3.17% in January

In December, the rate of retail inflation had stood at 3.41%, food inflation at 0.53%

Impacted by note ban, retail inflation fell to multi-year low of 3.17% in January mainly on account of declining prices of food items including vegetables and pulses.

Retail inflation, measured in terms of Consumer Price Index (CPI), was at 3.41% in December.

Last month's inflation, down from 5.69% in January 2016, was lowest in at least over three years.

Inflation in vegetables continued in the negative zone at (-)15.62% as against (-)14.59% a month earlier, as per the data from the Ministry of Statistics and Programme Implementation.

In pulses and products category also, the rate of price rise was negative at (-)6.62%.

Inflation in fruits was higher at 5.81%, fuel and light at 3.42%. The rate of price rise in meat and fish was 2.98%.

Government's sudden announcement on November 8, 2016 to abolish old Rs 500 and Rs 1,000 notes, nearly 86% of the total cash in circulation, dented demand in the consumer segment.

Overall, Consumer Food Price Index was down at 0.53% in January as against 1.37% in December.

Rural retail inflation was at 3.36% in January compared with 3.83% preceding month. For urban sector, it was at stable at 2.90%.