Retail inflation rate declined, reaching three-month low in January

Due to softening of food prices, retail inflation based on Consumer Price Index fell to a three-month low of 5.10 percent in January this year. Retail inflation in December 2023 was 5.69 percent whereas in January 2023 it was 6.52 percent. In August 2023, this inflation was at the highest level of 6.83 percent. According to the data released by the Central Statistics Office, food inflation was 8.3 percent in January 2024, while it was 9.53 percent in December 2023 and 6.0 percent in January 2023. According to the data released by the National Statistical Office (NSO), the inflation rate of food items stood at 8.3% in January 2024 whereas in the previous month it was at 9.53%. The government has given the Reserve Bank of India a target of keeping the retail inflation rate at four percent (with a margin of two percent on either side).