India's December Inflation Eases: A Mixed Bag of Price Changes

India's December 2024 retail inflation fell to 5.22%, driven by easing food prices and notable declines in rural and urban indices. Despite some vegetables showing high inflation, overall price pressures subsided. The next CPI release is expected in February, providing further insights into this trend.

India's retail inflation rate, based on the All India Consumer Price Index (CPI), fell to 5.22% in December 2024, reflecting a decrease from the previous month. Rural inflation stood at 5.76%, while urban areas experienced a lower rate of 4.58%, as per data from the Ministry of Statistics and Programme Implementation.

The Consumer Food Price Index (CFPI) indicated an 8.39% inflation rate in December, slightly down from November's 9.04%. Rural food inflation was pegged at 8.65% and urban inflation at 7.90%. The consistent decline in both CPI and CFPI since mid-2024 signals easing inflationary pressures, marking December as the lowest in the last four months.

Housing inflation fell marginally to 2.71% from November's 2.87%, reflecting shifting urban cost dynamics. Categories like pulses, sugar and confectionery, personal care, and cereals witnessed reduced inflation, contributing to the overall decrease in price pressures.

Conversely, vegetables such as peas saw drastic inflation increases, with a jump of 89.12%, potatoes at 68.23%, and garlic at 58.17%. Other items, including jeera, ginger, dry chillies, and LPG, recorded deflation, easing consumer expenses. The data shows a month-on-month CPI decline of 0.50% in rural areas and 0.62% in urban settings.

The combined CPI also saw a 0.56% drop, and the CFPI recorded declines of 1.30% in rural, 1.73% in urban, and 1.48% combined. The January 2025 CPI data is scheduled for release on February 12, offering further insights on these changes. (ANI)

(With inputs from agencies.)