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India's CPI Inflation Falls to 5 Month's Low In January Month

2025-02-12 Niranjan Ghatule

Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of January 2025 over January 2024 is 4.31% (Provisional). There is decline of 91 basis points in headline inflation of January, 2025 in comparison to December 2024. It is the lowest year on-year inflation after August, 2024; RBI projected 4.4% inflation for Q4FY25

Here is Sector wise inflation

1)Food Inflation: Year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of January 2025 over January, 2024 is 6.02% (Provisional). Corresponding inflation rate for rural and urban are 6.31% and 5.53%, respectively. All India inflation rates for CPI(General) and CFPI over the last 13 months are shown below. A sharp decline of 237 basis point is observed in food inflation in January, 2025 in comparison to December, 2024. The food inflation in January, 2025 is the lowest after August, 2024.

2)Rural Inflation: Significant decline in headline and food inflation in rural sector observed in January 2025. It is 4.64% (provisional) in January, 2025 while the same was 5.76% in December, 2024. The CFPI based food inflation in rural sector is observed as 6.31% in January, 2025 in comparison to 8.65% in December, 2024.

3)Urban Inflation: Sharp decline from 4.58% in December, 2024 to 3.87% (Provisional) in January, 2025 is observed in headline inflation of urban sector. Similar decline is observed in food inflation which is decreased from 7.9% in December, 2024 to 5.53% in January, 2025.

4) Housing Inflation: Year-on-year Housing inflation rate for the month of January, 2025 is 2.76%. Corresponding inflation rate for the month of December, 2024 was 2.71%. The housing index is compiled for urban sector only.

5) Education Inflation: Year-on-year Education inflation rate for the month of January, 2025 is 3.83%. Corresponding inflation rate for the month of December, 2024 was 3.95%. It is combined education inflation for both rural and urban sector.

6)Health Inflation: Year-on-year Health inflation rate for the month of January, 2025 is 3.97%. Corresponding inflation rate for the month of December, 2024 was 4.05%. It is combined health inflation for both rural and urban sector.

7)Transport & Communication: Year-on-year Transport & communication inflation rate for the month of January, 2025 is 2.76%. Corresponding inflation rate for the month of December, 2024 was 2.64%. It is combined inflation rate for both rural and urban sector.

8) Fuel & light: Year-on-year Fuel & light inflation rate for the month of January, 2025 is -1.38 %. Corresponding inflation rate for the month of December, 2024 was -1.33%. It is combined inflation rate for both rural and urban sector.

9) The significant decline in headline inflation and food inflation during the month of January, 2025 is mainly attributed to decline in inflation of Vegetables, Egg, Pulses & Products, Cereals and Products, Education, Clothing and Health.

10) Top five items with highest inflation: The top five items showing highest year on year Inflation at All India level in January 2025 are Coconut oil (54.20%), potato (49.61%), coconut (38.71%), garlic (30.65%), peas [vegetables] (30.17%).

11)Top five items with lowest inflation: The key items having lowest year on year inflation in January, 2025 are jeera (-32.25%), ginger (-30.92%), dry chilies (-11.27%), brinjal (-9.94%), LPG (excl. conveyance) (-9.29%).