Dec retail inflation eases to 4-month low at 5.22% on falling food prices

December CPI 2024: Inflation rates for rural and urban are 5.76 per cent and 4.58 per cent, respectively

India’s retail inflation rate, measured by the Consumer Price Index (CPI), for December stood at 5.22 per cent, showing a slight dip from 5.48 per cent in November. November's CPI fell from a 14-month high of 6.21 per cent in October, bringing the figure within the Reserve Bank of India’s (RBI’s) tolerance band of 2 to 6 per cent.

 

The decrease in December’s inflation was largely attributed to a notable drop in prices of key food items, including vegetables, pulses, sugar, and cereals. The Ministry highlighted that significant declines were observed in categories such as vegetables, pulses and products, sugar and confectionery, personal care, and cereals.

 

Inflation for rural areas was recorded at 5.76 per cent, while urban inflation stood lower at 4.58 per cent.

 

Rural and Urban inflation in December 2024 | MoSPI

   

The Consumer Food Price Index (CFPI), which measures food inflation, recorded a year-on-year increase of 8.39 per cent for December 2024. Rural food inflation was slightly higher at 8.65 per cent, while urban areas experienced a rate of 7.90 per cent.

 

Drop in food prices 

 

Among the food items, peas led the surge with a staggering year-on-year inflation rate of 89.12 per cent, followed by potatoes at 68.23 per cent, garlic at 58.17 per cent, coconut oil at 45.41 per cent, and cauliflower at 39.42 per cent. 

 

Conversely, some items showed deflation, with jeera (cumin) experiencing the steepest decline at -34.69 per cent, followed by ginger at -22.93 per cent, dry chillies at -10.32 per cent, and LPG (excluding conveyance) at -9.29 per cent, MoSPI said.