India's Retail Inflation Drops to 4.31% in January 2025: Key Insights
| Key Points | Details |
|---|---|
| Why in news? | India's retail inflation fell to 4.31% in January 2025, the lowest in five months, down from 5.22% in December 2024, mainly due to moderating food prices. Food inflation declined to 6.02% from 8.39%, and vegetable price inflation dropped to 11.35% from 26.6% in December. The RBI cut the repo rate by 25 bps to 6.25%, the first reduction in nearly five years. |
| Retail Inflation (CPI) Jan 2025 | 4.31% (Lowest in 5 months) |
| Retail Inflation (CPI) Dec 2024 | 5.22% |
| Food Inflation Jan 2025 | 6.02% (vs. 8.39% in Dec 2024) |
| Vegetable Price Inflation Jan 2025 | 11.35% YoY (vs. 26.6% in Dec 2024) |
| RBI Policy Rate Cut | Reduced by 25 bps to 6.25%, first cut in 5 years |
| Highest Inflation in Recent Months | October 2024: 6.2% (14-month high), Food Inflation: 10.9% |
| Possible Risks Ahead | Global commodity prices, rupee depreciation, weather impact on crops |
| Monetary Policy Authority in India | Reserve Bank of India (RBI) |
| RBI Governor | Sanjay Malhotra |