Retail inflation slows to 5-month low to 4.31% in January

In January, the Retail inflation of India slowed down at a low level of five months, due to the slowdown in food prices. The annual level of retail inflation was 4.31%, below the forecast of economists, 4.6% and decreased from 5.22% of December.

“Compared to December 2025, 2025, there is a decline in 91 basic points compared to 2025. In August 2024, retail inflation was 3.65%.

Food inflation decreased by 6.02% on December 8. This reduction in inflation increases the possibility of further monetary policy, which eased by India (RBI) for the first time in February to promote the economy in about five years. The government introduced significant income tax cuts in the February 1 budget to promote consumption.

In January, vegetated prices rose by 11.35% a year, compared to the increase of 26.60% in December. Grain porridge prices rose by 6.24%, in December, and pulses were 6.59% profit compared to 3.80%. The prices of vegetables and pulses have fallen from the previous month. The winter harvest contributed to the measurement of food prices, although the usual temperature of March could threaten the harvest of wheat.

Basic inflation, except for unstable food and energy items, is considered to be a better way of domestic demand in January to 3.7% in December, according to both economists.

Last week, RBI Governor Sanjay Malhotra said that the Central Bank remains vigilant about inflationary pressures and followed the impact of Rupees about local prices. He noted that 5% devaluation in Rupees affects internal inflation by 30 to 35 basic points. Concerns about the possible trade war have led to the rupees to hit the recorded at a record low 87.95 in February, the fears of increasing inflation on imported goods.

RBI expects inflation by an average of 4.8% in the current fiscal year in the current fiscal year and expects it to decrease by 4.2% next year. The Central Bank aims to have a 4% inflation target from both sides of two percentage points tolerance orchestra.