Which items saw highest & lowest inflation in January?
As we step into the new year, the Indian economy is witnessing a significant rise in inflation rates. The inflation rate, which measures the rate of change in the average price level of a basket of goods and services, has been on the rise in recent months. In January 2025, the all-India inflation rate was recorded at 7.35%, a significant increase from the previous year.
But what are the items that are driving this inflation rate? Which products are showing the highest year-on-year inflation, and which ones are showing a decline? In this blog post, we will explore the top five items showing the highest year-on-year inflation and the key items having the lowest year-on-year inflation in January 2025.
Top Five Items Showing the Highest Year-on-Year Inflation
According to a recent report by Moneycontrol, the top five items showing the highest year-on-year inflation at the all-India level in January 2025 are:
- Coconut Oil (54.20%): Coconut oil has seen a massive 54.20% year-on-year increase in prices, making it the item with the highest inflation rate. The surge in demand for coconut oil, particularly in the detergent and cosmetics industry, is attributed to the high demand for sustainable and eco-friendly products.
- Potato (49.61%): Potatoes are another essential item that has seen a significant price hike, with a year-on-year inflation rate of 49.61%. The rise in demand for potatoes, particularly in the food processing industry, is attributed to the increasing popularity of snacks and convenience foods.
- Coconut (38.71%): Coconut products, including coconut oil, coconut milk, and desiccated coconut, have seen a significant price hike, with a year-on-year inflation rate of 38.71%. The high demand for coconut products in the food and cosmetics industry is attributed to their health benefits and versatility.
- Garlic (30.65%): Garlic is another essential item that has seen a significant price hike, with a year-on-year inflation rate of 30.65%. The rise in demand for garlic, particularly in the food processing industry, is attributed to its health benefits and increasing popularity in Indian cuisine.
- Peas [Vegetables] (30.17%): Peas are a staple vegetable in Indian cuisine, and their price has seen a significant hike, with a year-on-year inflation rate of 30.17%. The rise in demand for peas, particularly in the food processing industry, is attributed to their health benefits and increasing popularity in Indian cuisine.
Key Items Having the Lowest Year-on-Year Inflation
On the other hand, there are certain items that have seen a decline in prices, with a negative year-on-year inflation rate. According to the report by Moneycontrol, the key items having the lowest year-on-year inflation in January 2025 are:
- Jeera (-32.25%): Jeera, also known as cumin, is a common spice used in Indian cuisine. Its price has seen a significant decline, with a year-on-year inflation rate of -32.25%.
- Ginger (-30.92%): Ginger is another essential spice that has seen a decline in prices, with a year-on-year inflation rate of -30.92%.
- Dry Chilies (-11.27%): Dry chilies are a common ingredient used in Indian cuisine, and their price has seen a decline, with a year-on-year inflation rate of -11.27%.
- Brinjal (-9.94%): Brinjal, also known as eggplant, is a popular vegetable in Indian cuisine. Its price has seen a decline, with a year-on-year inflation rate of -9.94%.
- LPG (-9.29%): Liquefied Petroleum Gas (LPG) is a common cooking fuel used in Indian households. Its price has seen a decline, with a year-on-year inflation rate of -9.29%.
Conclusion
In conclusion, the top five items showing the highest year-on-year inflation in January 2025 are Coconut oil, Potato, Coconut, Garlic, and Peas [Vegetables]. On the other hand, the key items having the lowest year-on-year inflation are Jeera, Ginger, Dry Chilies, Brinjal, and LPG. These trends indicate a significant shift in the Indian economy, with certain items experiencing a surge in demand and prices, while others are experiencing a decline.
As the Indian economy continues to evolve, it will be interesting to see how these trends shape up in the coming months. Will the prices of essential items continue to rise, or will we see a decline in prices? Only time will tell.
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