India’s consumer price inflation falls to 5.10% in January

Consumer price inflation in India, based on the Consumer Price Index (CPI), declined to 5.10 per cent in January 2024 from 5.93 per cent in December 2023, hitting a 3-month low, preliminary data released by the National Statistics Office (NSO) showed.

CPI inflation stood at 6.52 per cent in December 2022.

The annual rate of inflation based on the Consumer Price Index (Base 2012=100) has been declining since July when it touched a peak of 7.44 per cent amid soaring prices of vegetables during the monsoon season. 

Inflation based on the food price index declined to 8.30 per cent in January 2024 from 8.97 per cent in December 2023. It was 6.0 per cent in January 2023. Food prices account for nearly half of the overall consumer price index,

Consumer price inflation has shown a steady decline in the past few months as the Reserve Bank of India continued to hold its policy repo rate at 6.5 per cent for the sixth time in a row. 

Consumer price inflation for rural areas stood lower at 5.34 per cent in January 2024 against 5.46 per cent in December 2023 and 6.85 per cent in January 2023. 

Inflation rate for urban consumers declined to 4.92 per cent in January 2024, from 5.69 per cent in December and 6.00 per cent in January 20232.

Food price inflation for rural areas declined to 7.91 per cent in January 2024 from 8.97 per cent in December 2023, while it was lower at 6.63 per cent in January 2023.

Food price inflation for urban areas stood 9.02 per cent in January 2024 against 10.42 per cent in December 2023 and 4.85 per cent in January 2023.