New Delhi: India’s wholesale price inflation dropped to 2.31% in January 2025, down from 2.37% in December 2024, according to government data released on Friday. The decline was attributed to a moderation in food and fuel prices. In January 2024, the rate was significantly lower at 0.33%.
Food inflation saw a sharp fall, easing to 5.88% in January from 8.47% in December. Vegetable inflation dropped significantly to 8.35%, a major dip from 28.65% in the previous month. However, specific items such as potatoes and onions continued to experience price surges, with inflation at 74.28% and 28.33%, respectively.
The fuel and power sector witnessed a deflation of 2.78% in January, compared to 3.79% in December, while inflation in manufactured items rose slightly to 2.51% from 2.14%.
Meanwhile, retail inflation also showed a downward trend, falling to a five-month low of 4.31% in January, primarily due to lower prices of vegetables, eggs, and pulses. In December 2024, retail inflation was 5.22%, and in January 2024, it stood at 5.1%. The last time inflation was lower was in August 2024, at 3.65%.
According to National Statistics Office (NSO) data, the food basket inflation in January 2025 was recorded at 6.02%, the lowest since August 2024. The highest year-on-year inflation was observed in coconut oil (54.2%), potato (49.61%), coconut (38.71%), garlic (30.65%), and peas (30.17%).
The declining inflation trend is expected to provide relief to consumers and policymakers, who have been closely monitoring price fluctuations across essential commodities.
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