Retail Inflation Eases to 4-Month Low: All India CPI Reached 5.22% in Dec 2024

Retail inflation in India eased to 5.22% in December 2024, marking the lowest level in four months. This decline was primarily driven by a reduction in food prices, as the Ministry of Statistics & Programme Implementation reported on January 13.

Food Inflation Trends

Food inflation for December 2024 stood at 8.39%, slightly above the expected 8.3% but lower than the 9.04% recorded in November 2024. Within the food category, significant reductions were observed in vegetable inflation, which decreased from 29.33% to 26.56% and pulses inflation, which dropped from 5.41% to 3.83%.

Rural and Urban Inflation

Rural inflation declined to 5.76% in December 2024, down from 5.95% in November, while urban inflation eased to 4.58% from 4.83%.

Key Categories: Housing, Clothing, and Fuel

• Housing inflation in December 2024 was 2.71%, slightly lower than the 2.87% recorded in November.
• Clothing and footwear inflation remained stable at 2.74%, almost unchanged from 2.75% in the previous month.
• Fuel and light inflation improved to -1.39% from -1.83%.

Year-on-Year Inflation Overview

• The year-on-year inflation rate based on the All India Consumer Price Index (CPI) for December 2024 was 5.22%, with rural and urban inflation rates at 5.76% and 4.58%, respectively.
• The Consumer Food Price Index (CFPI) for food inflation in December 2024 was 8.39%, with rural and urban rates at 8.65% and 7.90%, respectively.

Significant Price Drops in Key Categories

In December 2024, inflation significantly declined in several categories, including:

• Vegetables
• Pulses & products
• Sugar and confectionery
• Personal care & effects
• Cereals and products

Items with the Highest and Lowest Inflation

The top 5 items showing the highest year-on-year inflation in December 2024 were:

1. Peas (Vegetables) – 89.12%
2. Potato – 68.23%
3. Garlic – 58.17%
4. Coconut oil – 45.41%
5. Cauliflower – 39.42%

The items with the lowest year-on-year inflation included:

1. Jeera – (-34.69%)
2. Ginger – (-22.93%)
3. Dry chillies – (-10.32%)
4. LPG (excluding conveyance) – (-9.29%)

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