Which items saw highest & lowest inflation in January?
The Indian economy is known for its dynamic market trends, and inflation is one of the key indicators of its overall health. As the cost of living increases, it becomes essential to keep a tab on the items that are experiencing the highest and lowest inflation rates. In this blog post, we will explore the top five items showing the highest year-on-year inflation at the all-India level in January 2025 and the key items having the lowest year-on-year inflation during the same period.
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%), Potato (49.61%), Coconut (38.71%), Garlic (30.65%), and peas (vegetables) (30.17%). These items have seen a significant increase in their prices, making it essential for consumers to be aware of these trends.
On the other hand, the key items having the lowest year-on-year inflation in January 2025 are Jeera (-32.25%), Ginger (-30.92%), Dry chillies (-11.27%), Brinjal (-9.94%), and LPG (-9.29%). These items have seen a decline in their prices, providing some relief to consumers.
What’s driving the highest inflation?
The increase in prices of coconut oil, potato, coconut, garlic, and peas can be attributed to various factors. One of the primary reasons is the supply chain disruptions caused by the ongoing pandemic. Many manufacturing units and agricultural sectors have been affected, leading to a shortage of these essential items and subsequently, a rise in their prices.
Another factor contributing to the high inflation is the increase in demand. As the economy begins to recover, people are willing to spend more on essential items, leading to an increase in demand. However, the supply chain is still struggling to keep up with this increased demand, resulting in higher prices.
Additionally, the impact of climate change is also playing a significant role in the increase in prices of these items. Weather-related events such as droughts, floods, and heatwaves have affected crop yields, leading to a shortage of certain products.
What’s driving the lowest inflation?
The decline in prices of Jeera, Ginger, Dry chillies, Brinjal, and LPG can be attributed to various factors. One of the primary reasons is the increase in supply. As the economy begins to recover, agricultural sectors and manufacturing units are able to produce more, leading to an increase in supply and subsequently, a decline in prices.
Another factor contributing to the low inflation is the decrease in demand. As people become more cautious with their spending, they are willing to opt for cheaper alternatives, leading to a decrease in demand for these items.
Additionally, the government’s efforts to control inflation by implementing policies such as subsidies and price controls have also played a role in the decline in prices of these items.
Conclusion
In conclusion, it is essential for consumers to be aware of the items that are experiencing the highest and lowest inflation rates. By understanding the factors driving these trends, consumers can make informed decisions about their spending habits and adjust their budgets accordingly.
The top five items showing the highest year-on-year inflation at the all-India level in January 2025 are Coconut oil (54.20%), Potato (49.61%), Coconut (38.71%), Garlic (30.65%), and peas (vegetables) (30.17%). On the other hand, the key items having the lowest year-on-year inflation in January 2025 are Jeera (-32.25%), Ginger (-30.92%), Dry chillies (-11.27%), Brinjal (-9.94%), and LPG (-9.29%).
It is crucial for consumers to monitor these trends and adjust their spending habits accordingly. By being aware of the items that are experiencing the highest and lowest inflation rates, consumers can make informed decisions and ensure that they are able to manage their finances effectively.
