Which items saw highest & lowest inflation in January?
As the cost of living continues to rise, it’s essential to stay informed about the items that are experiencing the most significant price hikes. According to recent data, certain essential commodities are seeing astronomical year-on-year inflation rates, while others are experiencing a decline. In this blog post, we’ll explore the top five items showing the highest and lowest year-on-year inflation in January 2025.
Highest Inflation Rates
The Reserve Bank of India (RBI) releases inflation data for various commodities, providing valuable insights into the market trends. 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 an astonishing 54.20% year-on-year inflation, coconut oil tops the list of commodities experiencing the highest price hike. This surge in price is likely due to increased demand and supply chain constraints.
- Potato: Potatoes are a staple food item for many Indians, and their price has seen a significant increase in January 2025, with a year-on-year inflation rate of 49.61%. This rise in price may be attributed to weather-related crop damage and transportation issues.
- Coconut: Coconuts are another essential commodity that has seen a significant price hike, with a year-on-year inflation rate of 38.71%. This increase in price may be due to factors such as crop damage, transportation costs, and increased demand.
- Garlic: Garlic is a common ingredient in many Indian dishes, and its price has seen a notable increase in January 2025, with a year-on-year inflation rate of 30.65%. This rise in price may be attributed to supply chain disruptions and increased demand.
- Peas: Peas are a popular vegetable in Indian cuisine, and their price has seen a significant increase, with a year-on-year inflation rate of 30.17%. This increase in price may be due to factors such as crop damage, transportation costs, and increased demand.
Lowest Inflation Rates
On the other hand, some essential commodities have seen a decline in prices, providing some relief to consumers. According to the RBI data, the key items having the lowest year-on-year inflation in January 2025 are:
- Jeera: Jeera, also known as cumin, has seen a remarkable decline in price, with a year-on-year inflation rate of -32.25%. This drop in price may be attributed to improved harvests and increased supply.
- Ginger: Ginger is another spice that has seen a significant decline in price, with a year-on-year inflation rate of -30.92%. This decrease in price may be due to factors such as improved harvests and increased supply.
- Dry chillies: Dry chillies are a staple spice in many Indian dishes, and their price has seen a notable decline, with a year-on-year inflation rate of -11.27%. This decrease in price may be attributed to improved harvests and increased supply.
- Brinjal: Brinjal, also known as eggplant, is a popular vegetable in Indian cuisine, and its price has seen a decline, with a year-on-year inflation rate of -9.94%. This decrease in price may be due to factors such as improved harvests and increased supply.
- LPG: LPG, or liquefied petroleum gas, is a common cooking fuel in many Indian households, and its price has seen a decline, with a year-on-year inflation rate of -9.29%. This decrease in price may be attributed to government subsidies and improved supply.
Conclusion
The data suggests that certain essential commodities are experiencing significant price hikes, while others are seeing a decline. Understanding these trends is crucial for consumers and businesses alike, as it can help inform purchasing decisions and investment strategies. By analyzing the inflation rates of various commodities, we can gain valuable insights into the market trends and make informed decisions to navigate the economic landscape.
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