Annual retail inflation dropped to 5.1% in January 2024, marking a three-month low, down from 5.69% in December. This decline was anticipated and attributed to favorable base effects from the previous year, particularly as inflation had risen in January 2023. Notably, food prices continued to slow, with food inflation decreasing to 8.3% from 9.5%.
The Reserve Bank of India (RBI) projected inflation to average 5.4% for the current fiscal year and 4.7% for the next, aiming to reach the target of 4%.