Sunday , 16 February 2025
Home Kripto India’s Inflation Drops to 5.22%, Marking the Lowest Level in Four Months
Kripto

India’s Inflation Drops to 5.22%, Marking the Lowest Level in Four Months

India’s Inflation Drops to 5.22%, Marking the Lowest Level in Four Months

India’s inflation rate eased to 5.22% in December, marking the lowest level in four months, driven by a decline in food prices, according to the National Statistical Office (NSO). This represents a drop from 5.48% in November and exceeded economists’ expectations of 5.30%. Compared to December 2023, when inflation was at 9.53%, this drop signals a positive shift.

Food inflation moderated to 8.39% in December from 9.04% in November, largely due to falling prices of vegetables, pulses, sugar, confectionery, and cereals. Housing inflation also slowed to 2.71%, down from 2.87%, and fuel costs were 1.39% lower than last year. Overall, consumer prices saw a 0.56% decrease month-over-month.

RBI Holds Steady on Interest Rates

Despite this easing, the Reserve Bank of India (RBI) maintained the benchmark repo rate at 6.5% in December. The RBI’s cautious approach reflects its concern about sustaining inflation control, even as it acknowledges the current slowdown.

While inflation has decreased, challenges remain. Food prices could rise again, and global commodity prices may affect inflation in 2025. Nevertheless, this easing offers hope for improving consumer sentiment and purchasing power.

What The Author Thinks

While the inflation slowdown is a positive sign, it’s still uncertain whether this trend will hold. The RBI’s cautious stance reflects ongoing concerns, and food prices remain a wildcard. Overall, the economy is moving in the right direction, but more time is needed to ensure sustained price stability.

Related Articles

OpenAI Shifts Focus from DEI to Dynamic Teams Amidst Growing Backlash
Kripto

OpenAI Shifts Focus from DEI to Dynamic Teams Amidst Growing Backlash

OpenAI has recently altered its approach to Diversity, Equity, and Inclusion (DEI)...

Nvidia GeForce RTX 5070 Ti Set to Debut Amid Supply Struggles
Kripto

Nvidia GeForce RTX 5070 Ti Set to Debut Amid Supply Struggles

Nvidia has confirmed the launch of the GeForce RTX 5070 Ti, scheduled...

Controversy Erupts Over Elon Musk’s Team Accessing Federal Employee Data
Kripto

Controversy Erupts Over Elon Musk’s Team Accessing Federal Employee Data

A federal judge has blocked the team known as DOGE, led by...

German Antitrust Watchdog Scrutinizes Apple’s App Privacy Framework
Kripto

German Antitrust Watchdog Scrutinizes Apple’s App Privacy Framework

Germany’s antitrust watchdog, the Bundeskartellamt (FCO), is intensifying its investigation into Apple’s...