According to data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) on Monday, annual retail inflation in January 2024 decreased to 5.1%. This marks the lowest inflation rate in three months, down from 5.69% in December.
Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA Ltd, said, “The correction in the inflation for food and beverages was led by a favourable base effect. While rabi sowing has caught up with last year’s level, reservoir storage remains well below the year-ago levels in most regions, continuing to imbue caution into the outlook for the rabi harvest. Inflation for the miscellaneous sub-group, which includes various services, fell below 4% after a gap of 49 months, and is expected to remain sub-4% over H1 CY2024, auguring well for the core inflation.”
In January 2024, the NSO collected price data from 99.8% of villages and 98.5% of urban markets. The report indicates that market-wise prices were reported from 89.9% of rural areas and 93.6% of urban areas during the month.
