India’s Consumer Price Index (CPI)-based inflation for December 2024 dropped to 5.22%, marking its lowest level in four months, as per the data released by the Ministry of Statistics & Programme Implementation (MoSPI). This is a decline from 5.48% recorded in November 2024 and 5.69% in December 2023.
India’s inflation metrics for December 2024 showcased notable improvements across key categories on a month-on-month (MoM) basis. Rural inflation eased to 5.76% compared to 5.95% in November, while urban inflation declined to 4.58% from 4.83% MoM. Among specific categories, vegetable inflation dropped to 26.56% from 29.33%, and pulses inflation moderated to 3.83% from 5.41%. The fuel and light segment continued its deflationary trend, contracting by 1.39% compared to -1.83% in the previous month. Housing inflation softened marginally to 2.71% from 2.87%, while clothing and footwear inflation remained stable, inching down slightly to 2.74% from 2.75% MoM.
Key Highlights:
- Urban vs Rural Inflation:
- Urban inflation stood at 4.58%.
- Rural inflation was higher at 5.76%.
- Food Price Index (CFPI):
- The Consumer Food Price Index (CFPI) eased to 8.39% in December from 9.04% in November, with urban food inflation at 7.90% and rural food inflation at 8.65%.
- Decline in Prices:
- Significant reductions were seen in vegetables, pulses, sugar, and cereals.
- Vegetables like peas, potatoes, and garlic witnessed high inflation, with rates at 89.12%, 68.23%, and 58.17%, respectively.
- On the contrary, spices such as jeera and ginger experienced negative inflation rates of -34.69% and -22.93%.
- Housing Inflation:
- The urban housing inflation rate for December was at 2.71%, slightly lower than November’s 2.87%.
- Fuel and Light:
- Inflation in the fuel and light category contracted by 1.39%.
State-wise Highlights:
Among states, Odisha reported the highest inflation at 7.79%, while Telangana recorded the lowest inflation at 3.14%.
Outlook:
The drop in CPI inflation reflects easing food and energy prices. Economists expect this trend to influence the Reserve Bank of India’s monetary policy decisions in the upcoming review.
For a detailed breakdown of inflation rates across categories and states, click here
