Retail Inflation: Big relief to the common man, retail inflation fell to 4 month low in December

There is relief news for the common man on the inflation front. Retail inflation has fallen to a four-month low of 5.22 percent in December. The inflation rate in November was 5.48 percent. In the data released by the Statistics Ministry on Monday, it was said that the reason for low retail inflation is the decline in the prices of vegetables, pulses and sugar. In October, retail inflation had reached a 14-month high of 6.21 percent.

Big decline in inflation rate in vegetables and pulses

According to a statement from the ministry, a major decline has been seen in the inflation rate of vegetables, pulses, sugar and sweets, cereals and personal care and other items during the month of December. Apart from this, the housing inflation rate was 2.71 percent in December, which was 2.87 percent in November.

What is the most expensive and what is the cheapest in December?

According to official data, the highest inflation in December 2024 was 89.12 percent in peas (vegetable), 68.23 percent in potato, 58.17 percent in garlic, 45.41 percent in coconut oil and 39.42 percent in cauliflower.

Apart from this, the lowest inflation rate in December 2024 has been -34.69 percent in cumin, -22.93 percent in ginger, -10.32 percent in dry chilli, -9.29 percent in LPG (except vehicle duty).

RBI waits for retail inflation to come down to 4%

The decline in inflation is a good sign as retail inflation had crossed the RBI’s upper limit of 6 per cent in October. RBI is waiting for retail inflation to come down to 4 percent before cutting interest rates to boost growth.

Due to reduction in CRR, liquidity of Rs 1.16 lakh crore has increased in the banking system.