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India’s CPI Inflation Eases to 4.3% in January

15 February 20251 min read
ECONOMYIndia’s CPIInflation Eases to4.3% in January15 February 2025safalsetu.com

Why in the news

Retail inflation cooled to 4.3% in January, thanks to a good winter vegetable harvest, but imported price pressures and a weak rupee remain risks.

Key facts

  • CPI inflation: 4.3%, a five-month low, near RBI’s 4% target.
  • Urban: 3.9%; rural: 4.6%.
  • RBI expects an average of 4.4% this quarter and 4.2% in 2025-26.
  • Food inflation also dropped, easing household budgets.

Risks

RiskDetail
RupeeLost nearly 4% against the dollar in late 2024-25, raising import costs
Edible oilsUp 15.6% in January; wholesale prices jumped 33.1%; 60% of demand is imported
WeatherHeatwaves or a weak monsoon could undo food price gains

Policy suggestions

  • Finance Minister Nirmala Sitharaman was confident food prices would stay in check in 2025.
  • Possible indirect tax relief: fuel levies, edible oil import duties, GST cuts.
  • Easing prices could gradually revive consumption and growth.

Exam angle

  • RBI inflation target: 4%.
  • Edible oil import dependence: 60%.

Test yourself

1. What was India's consumer price inflation in January 2025 according to these notes?

CPI inflation fell to 4.3%, a five-month low.

2. By what percentage did edible oil prices rise in January, the highest in nearly three years?

Edible oils rose 15.6%.

3. What share of India's edible oil demand is met through imports, as per these inflation notes?

Sixty percent of demand is imported.

This topic is part of Daily Current Affairs 15 February 2025 (10 topics).

All topics of the dayDay quizFebruary 2025

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