Retail inflation fell to a 4-month low of 5.22% in December as food prices fell.

Retail inflation slowed to a four-month low of 5.22 percent in December compared to 5.48 percent in November, mainly due to lower food basket prices, according to government data released on Monday.

According to Consumer Price Index data released by the Office of National Statistics, food inflation fell to 8.39 percent in December. It reached 9.04 percent in November and 9.53 percent in December 2023.

“The (overall) consumer price index and food inflation in December 2024 are the lowest in the past four months,” the ONS said.

Inflation based on the Consumer Price Index was 5.48 percent in November and 5.69 percent in December 2023.

Last month, the Reserve Bank of India raised inflation expectations for the current fiscal year to 4.8 percent from 4.5 percent. He also said that persistent food price pressures are likely to keep headline inflation high in the December quarter.

The headline inflation rate based on the CPI rose from an average of 3.6% during the period from July to August to 5.5% in September and then to 6.2% in October 2024.

The housing inflation rate for December 2024 on an annual basis was 2.71 percent. The corresponding inflation rate for November 2024 was 2.87 percent. The housing index was compiled for the urban sector only, according to an official statement.

She added that during the month of December 2024, a significant decrease in inflation rates was observed in vegetables, legumes and their products, sugar, sweets, personal care products, luggage, grains and their products, and others.

The latest retail inflation figure was within the Reserve Bank of India’s medium-term target of 2-6%.

Food inflation, which represents a continuing challenge, rose by 8.39 percent annually in December compared to a rise of 9.04 percent in the previous month, and 9.53 percent in the same period last year. Food inflation rose by 10.87 percent in October, 9.24 percent in September, and 5.66 percent in August.

India’s retail inflation rate rose to a 14-month high of 6.2 per cent in October, with food inflation reaching a 15-month high of 10.9 per cent.

Food prices have kept inflation high in recent months, driven largely by the persistent rise in vegetable prices, which have often risen by double digits over a year.

Rural inflation fell to 5.76% compared to 9.10% in November, while urban inflation slowed to 4.58% compared to 8.74% in the previous month.

The Reserve Bank of India’s Monetary Policy Committee (MPC) in December lowered its growth forecast for this fiscal year to 6.6 percent from 7.2 percent, while increasing its inflation estimate to 4.8 percent from 4.5 percent for the same period, highlighting concerns about inflation. Food.