Retail inflation slows to 5-month low of 4.3 pc in Jan: Govt data
New Delhi, Feb 12 (PTI): Continuing the downward trend, retail inflation fell to a five-month low of 4.31 per cent in January, mainly due to a decline in the prices of vegetables, eggs, and pulses.
The Consumer Price Index-based retail inflation was 5.22 per cent in December and 5.1 per cent in January 2024. The previous low inflation was in August 2024 at 3.65 per cent. The Consumer Price Index has been on a decline since October.
The inflation in the food basket was 6.02 per cent in January, the lowest after August 2024 when it was 5.66 per cent.
There is a decline of 91 basis points in headline inflation of January 2025 in comparison to December 2024 and it is the lowest year-on-year inflation after August 2024, the National Statistics Office (NSO) data showed.
According to the data, the top five items showing the highest year on year inflation were coconut oil (54.2 per cent), potato (49.61 per cent), coconut (38.71 per cent), garlic (30.65 per cent), peas (30.17 per cent).
On the other hand, the key items having the lowest year on year inflation in January were jeera (-32.25 per cent), ginger (-30.92 per cent), dry chilies (-11.27 per cent), brinjal (-9.94 per cent), LPG (excluding conveyance) (-9.29 per cent).
Last week, the Reserve Bank years effected a rate cut of 25 basis points after a gap of five years to spur growth as inflation was in its comfort zone. The central bank has been mandated by the government to ensure CPI remains at 4 per cent with a margin of 2 per cent on either side.
NSO further said a significant decline in headline and food inflation in the rural sector was observed in January 2025.
It was 4.64 per cent in January compared to 5.76 per cent in the preceding month.
The food inflation in the rural sector was 6.31 per cent in comparison to 8.65 per cent in December 2024.
Similarly, urban inflation witnessed a sharp decline from 4.58 per cent in December 2024 to 3.87 per cent in January. Food inflation decreased from 7.9 per cent in December to 5.53 per cent in January 2025.
Housing inflation rate was marginally higher in January 2.76 per cent over December.
"The significant decline in headline inflation and food inflation during the month of January, 2025 is mainly attributed to decline in inflation of vegetables, eggs, pulses and products, cereals and products, education, clothing and health," NSO said.
The data further showed that top five states which had higher inflation than the national average in January were Kerala (6.76 per cent), Odisha (6.05 per cent), Chhattisgarh (5.85 per cent), Haryana (5.1 per cent), and Bihar (5.06 per cent).
The lowest inflation was in Delhi at 2.02 per cent.
The NSO collects price data from selected 1,114 urban markets and 1,181 villages covering all States/UTs on a weekly roster.
Commenting on the data, Aditi Nayar, Chief Economist, ICRA said the CPI inflation fell appreciably sharper than expected to a five-month low, led primarily by food items, vindicating the unanimous rate cut effected by the Reserve Bank's Monetary Policy Committee (MPC) last week.
"Looking ahead, ICRA believes that the growth-inflation outlook suggests that there is room for another 25 bps rate cut in either the April or the June 2025 meetings. The exact timing of the same would depend on the incoming data, global developments, and the movements in the USD/INR pair," she added.
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IPL final shifted for bigger stadium, not ticket issue: Shivakumar
Bengaluru (PTI): Karnataka Deputy Chief Minister D K Shivakumar on Wednesday rubbished allegations that the IPL final venue was shifted from Bengaluru to Ahmedabad due to the distribution of tickets to MLAs.
Speaking to reporters, Shivakumar said the reason for the shift could be the availability of a larger stadium in Ahmedabad.
“Ahmedabad has a large stadium and can accommodate more spectators. That must be the reason the IPL final was shifted there. There is no connection between ticket distribution to MLAs and the venue change,” he said.
When asked about reports linking the venue shift to MLAs demanding tickets, he quipped, “In some places, 50 per cent of tickets are reserved.”
When reporters said the BCCI had indicated that the decision was linked to ticket issues, he responded, “Let them make such statements. I will respond appropriately.”
Bengaluru was originally expected to host the final as the Royal Challengers Bengaluru were the defending champions.
Ahmedabad will host the IPL final for a second successive season on May 31, the BCCI announced earlier in the day, while allotting Qualifier 1 to Dharamsala and two other playoff games to New Chandigarh.
The board, however, said the final venue was shifted “owing to certain requirements from the local association and authorities that were beyond the scope of BCCI’s established guidelines and protocols.”
Shivakumar declined to comment on the revocation of the suspension of Muslim leaders in Davanagere, saying it was a party decision.
Regarding the removal of MLC Naseer Ahmed as CM Siddaramaiah’s political secretary, he said the chief minister had already spoken on the matter.
“The CM has his own information. Party office-bearers have provided guidance. He was given certain responsibilities, which he did not handle properly, which is why he was removed,” Shivakumar said.
On MLC Abdul Jabbar, who resigned as the state Congress minority cell chief and was later expelled from the party, he said Jabbar had submitted his resignation, which the party accepted.
The Congress in Karnataka faced internal dissent in April when several Muslim leaders objected to the party fielding Samarth Shamanur as its candidate for the recently held Davanagere South Assembly bypoll.
They demanded that a Muslim candidate be fielded, citing the constituency’s substantial Muslim population. The party subsequently took disciplinary action against three leaders, including Jabbar and MLC Ahmed.
When asked about his and the CM’s visit to Delhi, he said, “We will go when the high command calls us. It is not appropriate to go without being called.”
On Congress supporting TVK in Tamil Nadu, Shivakumar said the decision was taken to keep the "BJP out of power and strengthen secular forces." Elections to the 234 Assembly constituencies were held on April 23, and the results were announced on May 4.
The Congress party, a long-time ally of the DMK, announced its support for TVK to form a government in Tamil Nadu and severed ties with the Dravidian major.
The incumbent DMK was trounced by the fledgling Tamilaga Vettri Kazhagam, led by Vijay, who secured 108 seats. “Despite pressure from the AIADMK and BJP, TVK did not align with them. Our party has taken this decision in the interest of secular forces and the welfare of Tamil Nadu,” Shivakumar said.
