Retail Inflation Hits 5-Month Low, Industrial Output Growth Slows

India’s retail inflation eased to a five-month low of 4.31% in January 2025, down from 5.22% in December, primarily due to moderating food prices. Food inflation dropped to 6.02% from 8.39% in December. Meanwhile, industrial output growth slowed to 3.21% in December 2024, compared to 4.96% in November, largely due to a slowdown in the manufacturing sector. The manufacturing output growth decelerated to 3% in December from 5.5% in November. These figures suggest a mixed economic picture, with easing inflation providing relief to households and policymakers, while the slowdown in industrial production may raise concerns about economic momentum. The Reserve Bank of India’s recent repo rate cut to 6.25% reflects its response to the evolving economic conditions.

Source: India Times, Financial Express