India’s Retail Inflation Eases to 4.31% in January 2025
Why in the news
Price rises cooled to a five-month low in January 2025 as food got cheaper.
Key facts
- 4.31% versus 5.22% (December 2024) and 5.1% (January 2024).
- Food inflation: third straight fall, 6% from 8.4%.
- RBI cut rates by 0.25 percentage points.
| Area | Rate | Note |
|---|---|---|
| Urban | 3.87% | Under RBI’s 4% target |
| Rural | 4.64% | Was 5.8% in December; still above median target |
Outlook and concerns
- Projected average: 4.4% in January-March, 4.2% in 2025-26.
- Rupee weakness raises imported inflation risk in edible oils, fertilisers and petroleum.
- Around 60% of edible oil supply is imported.
Exam angle
- Headline: 4.31%. Urban figure below 4% target.