Which items saw highest & lowest inflation in January?
As the economy continues to evolve, inflation remains a crucial indicator of economic health. In January 2025, the Consumer Price Index (CPI) for India recorded a rise, prompting a closer look at the items that experienced the highest and lowest inflation rates. In this blog post, we’ll explore the top five items showing the highest year-on-year inflation and the key items with the lowest year-on-year inflation in January 2025.
Highest Inflation Items:
According to the latest data, the top five items showing the highest year-on-year inflation at the all-India level in January 2025 are:
- Coconut oil: With a staggering 54.20% year-on-year inflation rate, coconut oil tops the list. This significant increase is likely due to the growing demand for healthy fats and oils, coupled with supply chain disruptions and production costs.
- Potato: Potato prices saw a substantial surge, with a 49.61% year-on-year inflation rate. This increase is partly attributed to the recent drought in major potato-producing states, leading to a shortage in supply.
- Coconut: Coconut, a staple ingredient in many Indian households, experienced a 38.71% year-on-year inflation rate. The rise in demand, combined with weather-related issues and transportation costs, contributed to this significant increase.
- Garlic: Garlic, a common cooking ingredient, saw a 30.65% year-on-year inflation rate. The increase in garlic prices is attributed to the recent floods in major garlic-producing states, which affected crop yields and availability.
- Peas (vegetables): Rounding out the top five, peas experienced a 30.17% year-on-year inflation rate. This increase is partly due to the recent cold wave in various parts of the country, which impacted crop yields and supply.
Lowest Inflation Items:
On the other hand, the following key items showed the lowest year-on-year inflation in January 2025:
- Jeera: With a whopping -32.25% year-on-year inflation rate, Jeera (cumin seeds) takes the top spot for lowest inflation. This significant decline is attributed to a surplus in supply and reduced demand.
- Ginger: Ginger, a popular spice, experienced a -30.92% year-on-year inflation rate. The decrease in ginger prices is partly due to improved harvests and increased imports.
- Dry chillies: Dry chillies, a staple in many Indian households, saw a -11.27% year-on-year inflation rate. The decline in prices is attributed to a surplus in supply and reduced demand.
- Brinjal: Brinjal (eggplant), a widely consumed vegetable, experienced a -9.94% year-on-year inflation rate. The decrease in prices is partly due to improved harvests and increased supply.
- LPG: Rounding out the list, LPG (liquefied petroleum gas) saw a -9.29% year-on-year inflation rate. The decline in prices is attributed to a surplus in supply and reduced demand.
Conclusion:
Inflation rates can have a significant impact on households and businesses alike. By understanding which items experienced the highest and lowest inflation rates in January 2025, we can better navigate the economic landscape. Whether you’re a consumer looking to make informed purchasing decisions or a business owner trying to mitigate the effects of inflation, having access to accurate and timely data is crucial.
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