Retail inflation falls for the second consecutive month, expectations of interest rate decline increase
New Delhi| Retail inflation has declined for the second consecutive month in December, 2024, as prices of vegetables and other food items have decreased. Retail inflation had been 5.49 per cent in September, rising to 6.21 per cent in October. After this, it decreased to 5.48 percent in November and further decreased to 5.22 percent in December. Due to softening of retail inflation, RBI may consider cutting interest rates in the next Monetary Policy Committee meeting to be held in early February. The repo rate has remained stable at 6.50 per cent for nearly two years.
According to the National Statistics Office, retail inflation has declined in villages and cities last month. Rural inflation declined to 5.76 per cent, which had been 5.95 per cent in November. Urban inflation eased from 4.89 per cent to 4.58 per cent.
The highest inflation on an annual basis in December was recorded in peas (89.12%), potatoes (68.23%), garlic (58.17%), coconut oil (45.41%) and cauliflower (39.42%). Cumin, ginger, dry chili and domestic cooking gas were lowest.
