How costly or cheap a product gets over time is measured by the retail inflation data that is presented by the government. In India, this data is presented usually on the 12th day of every month.
The Union statistics and programme implementation ministry on February 12 released the retail inflation data for the month of January. As per the ministry’s press release, the metric has fallen to 4.31%, its lowest level since August 2024.
Since retail inflation is measured by tracking the price movements of several commodities being sold across India, the data also broadly represents how cheaper or costlier shopping has become for Indians.
Highs and lows of inflation
The top five items with the highest inflation rates in January 2025 included coconut oil (54.20%), potato (49.61%), coconut (38.71%), garlic (30.65%), peas [vegetables] (30.17%).
The items with the lowest inflation rates included jeera (-32.25%), ginger (-30.92%), dry chilies (-11.27%), brinjal (-9.94%), LPG (excluding conveyance) (-9.29%).
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What got cheaper?
As compared to December 2024, the overall prices of food and beverages saw slight declines in January 2025. This includes prices of eggs, vegetables and sugar and confectionary items.
Spices, pulses and related products became cheaper. The prices of pan, tobacco and intoxicants also fell marginally.
What got costlier?
Cereals, meat, fish, milk and milk products, oils, fats, fruits, non-alcoholic beverages, prepared meals, snacks, and sweets saw slight increases in prices despite the overall food and beverage category’s falling prices, which were pulled down by a dip in vegetable prices.
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Other products that saw marginal price hikes include clothing, footwear, housing, fuel and light, health, transport, and communication. On the other hand, recreation and amusement activities, education, and personal care and effects also saw their prices rise in Januarycompared to December 2024.
They got costlier but by smaller margins
This means that although the prices of the products mentioned above rose over a period of one month, the value of the hike fell compared to December 2024.
To calculate this, consumer price index (CPI) is used. CPI data for the month of January 2024 was 185.5 while that for January 2025 is 193.5. The difference between the CPI values of the two months is termed as the inflation rate, which in this case is 4.31%.
In December 2024, this number was at 5.22% and at 5.10% in January 2024.
The rate of increase in housing prices rose from 2.71% in December to 2.76% in January. However, education and health inflation fell from 3.95% to 3.83% and from 4.05% to 3.97% respectively.
Transport and communication inflation rose from 2.64% to 2.76% while the inflation for fuel and light, which has been seeing a decline in prices, fell from -1.33% to -1.38%.
