Retail inflation based on Consumer Price Index (CPI) slumped to a series low of 3.17 per cent in January, mainly due to fall in food prices, especially those of vegetables and pulses.
This is the lowest level of inflation rate recorded since the new CPI series was launched in January 2014. Retail inflation was at 3.41 per cent in December.
However, core inflation–the inflation rate excluding food and fuel inflation–inched higher to 5.1 per cent in January 2017 from 4.9 per cent last month.
Consumer Food Price Inflation (CFPI) declined sharply to 0.53 per cent in January as against 6.85 per cent in January 2016 and 1.37 per cent last month. Vegetable inflation continued to be in the negative territory at (-)15.62 per cent as against (-)14.59 per cent a month ago, data released by the Ministry of Statistics and Programme Implementation showed.
For pulses and products also, the inflation rate was in negative zone at (-)6.62 per cent.
Inflation rate of meat and fish, however, increased to 2.98 per cent in January, while that for fruits stood at 5.81 per cent.
The fuel and light category’s inflation rate stood at 3.42 per cent in January. The impact of demonetisation was visible in lower consumer demand as reflected by a decline in inflation for clothing and footwear, household goods and services and personal care. Clothing and footwear inflation in January stood at 4.17 per cent, lower than 4.88 per cent a month ago. Inflation for household goods and services also declined to
4.19 per cent in January as against 4.45 per cent a month ago.