Vegetable inflation fell 20% to 8.35%, energy costs will soften

There has been a sharp decline in food inflation. It came down to 5.88% in January, which was 8.47% in December 2024. During the same period, vegetable inflation also fell sharply to 8.35%. It was 28.65% in December 2024. Due to this, the wholesale inflation rate came down to 2.31% in January.

According to government data, potato inflation remained at a high level of 74.28%. Onion inflation increased to 28.33% in January.

Inflation in the fuel and electricity category declined by 2.78% in January compared to 3.79% in December. Inflation in manufactured goods rose to 2.51% in January 2025 compared to 2.14% in December 2024. This suggests that the cost of production has increased, which could potentially affect the prices of consumer goods in the coming years.

The relief in the fuel and power category is expected to soften energy costs a little, which is relief news for industries and the general public. Inflation in the egg, meat, and fish category declined to 3.56% from 5.43% in December.

Earlier, Consumer Price Index (CPI) based inflation declined to 4.31% in January. This indicates that the prices of food items are stabilizing. Rahul Agarwal, Senior Economist, ICRA, said, "We estimate that wholesale inflation will average 2.4% in FY 2024-25 and will remain at three% in FY 2025-26.