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CPI inflation eases to 19-month low of 2.05% in January
Feb-13-2019

India’s retail inflation based on Consumer Price Index (CPI) continued its southward journey for another month and eased further to 2.05% in the month of January 2019, the lowest in the last 19 months. The fall in inflation was on the back of continued decline in food prices, including vegetables and eggs. It was also lower than 5.07% growth in the same month of last year. The inflation was lowest since June 2017 when it had touched 1.46%. Besides, the CPI for December 2018 has also been revised downward to 2.11% from the earlier estimate of 2.19%. Moreover, Consumer Food Price Index (CFPI) deflated to (-) 2.17% in January 2019, from 4.70% in the corresponding month of 2018.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for January 2019, stood at 1.29%, 2.91% and 2.05% respectively, compared to 5.21%, 4.93% and 5.07%, respectively in January 2018. The index value of CPI for combined stood at 139.7. The data also showed that CFPI for all India Rural and Urban for January 2019 stood at (-) 2.80% and (-) 0.96%, respectively, compared to 5.05% and 4.06%, respectively in January 2018. The index value of CFPI for combined stood at 135.1 for the month of January.

The ‘food and beverages’ segment registered a deflation of 1.29% in January as against 1.49% deflation a month ago. Vegetables recorded a deflation of 13.32% in January as against a decline of 16.14% a month ago, while sugar and confectionery registered 8.16% deflation as against 9.22% deflation a month ago. Inflation for the ‘fuel and light’ category moderated to 2.20% in January from 4.54% in December 2018. However, the prices of milk-based products rose marginally by 0.78%, while cereals became dearer by 0.88% and meat and fish prices recorded a rise of 5.06%.


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