Retail Inflation (Image Source: iStockphoto)
India's annual retail inflation has witnessed a decline to 5.10 per cent, marking a decrease from December's four-month high of 5.69 per cent, according to the data released on Monday from the Ministry of Statistics & Programme Implementation.
The figures continue to align with the Reserve Bank of India's (RBI) tolerance band of 2-6 per cent.
In January, the inflation rate in both rural and urban areas exhibited a decline, settling at 5.34 per cent and 4.92 per cent, respectively, down from 5.93 per cent and 5.46 per cent recorded in the corresponding month the previous year.
This moderation in inflation is primarily attributed to a cooling of food prices. Specifically, food inflation for January marked a decrease to 8.30 per cent, compared to the 9.53 per cent recorded in December.
Breaking down the figures, vegetable inflation saw a marginal easing to 27.03 per cent from 27.64 per cent in December, contributing to the overall moderation observed in the inflationary landscape.
Meanwhile, in December 2023, India's industrial production exhibited a growth of 3.8 per cent, as per official data released on Monday. The Index of Industrial Production (IIP) recorded an increase from the 5.1 per cent growth observed in December 2022.
The manufacturing sector specifically saw a 3.9 per cent rise in output during December 2023, compared to 3.6 per cent in the corresponding month of the previous year. The data, provided by the National Statistical Office (NSO), highlighted a 5.1 per cent increase in mining production and a 1.2 per cent surge in power output for December. Overall, IIP reflected a growth of 6.1 per cent from April to December 2023, surpassing the 5.5 per cent expansion seen in the same period the previous year.