India’s consumer price inflation falls further to 4.06% in January
15 Feb 2021
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Consumer price inflation in the country, based on the consumer price index declined to 4.06 per cent in January 2021 from 4.59 per cent in December 2020, remaining within the tolerance limit set by the Reserve Bank of India of 4% +/- 2%, as prices of fruits and vegetables declined with winter crop arrivals.
The decline in consumer prices can also be attributed to easing of supply constraints following the lifting of lockdown restrictions.
Data released by the CSO showed that consumer price inflation that has been steadily rising after hitting 3.15 per cent in July last year has started declining with falling food prices and easing of supply bottlenecks.
Consumer price inflation for rural areas stood at 3.23 per cent in January 2021, down from 4.07 per cent in December 2020.
Consumer price inflation for urban areas declined to 5.06 per cent in January 2021 against 5.19 per cent in December 2020.
Food price inflation for rural areas stood at 1.11 per cent in January 2021 against 3.11 per cent in December 2020.
Food price inflation for urban areas stood at 3.36 per cent in January 2021 against 4.08 per cent in December 2020.
