Which items saw highest & lowest inflation in January?
Inflation is a crucial economic indicator that measures the rate of change in prices of goods and services over a specific period. In India, the Reserve Bank of India (RBI) tracks the Wholesale Price Index (WPI) to gauge inflation. The WPI is a comprehensive measure of inflation that accounts for prices of a wide range of goods and services. In this blog post, we will explore the top five items that showed the highest year-on-year (YoY) inflation in January 2025, as well as the key items that experienced the lowest YoY inflation during the same period.
Highest Inflation Items
According to the latest data released by the Ministry of Commerce and Industry, the top five items showing the highest YoY inflation at the all-India level in January 2025 are:
- Coconut oil: With an astonishing 54.20% YoY inflation, coconut oil tops the list of items with the highest inflation in January 2025. This surge in prices can be attributed to increased demand, production constraints, and higher input costs.
- Potato: Potatoes witnessed a significant 49.61% YoY inflation in January 2025, making it the second item on the list. This may be due to supply chain disruptions, weather-related issues, and increased demand.
- Coconut: Coconut prices also experienced a substantial 38.71% YoY inflation in January 2025. This could be attributed to increased demand for coconut products, such as coconut oil, and production constraints.
- Garlic: With a 30.65% YoY inflation, garlic took the fourth spot on the list. This may be due to weather-related issues, higher input costs, and increased demand.
- Peas (vegetables): Peas, which are a popular vegetable in Indian cuisine, experienced a 30.17% YoY inflation in January 2025. This could be attributed to supply chain disruptions, weather-related issues, and increased demand.
Lowest Inflation Items
On the other hand, the following five items showed the lowest YoY inflation in January 2025:
- Jeera: Jeera, also known as cumin seeds, experienced a remarkable -32.25% YoY deflation in January 2025. This could be attributed to increased production, lower demand, and improved supply chain management.
- Ginger: Ginger prices also showed a significant -30.92% YoY deflation in January 2025. This may be due to increased production, lower demand, and improved supply chain management.
- Dry chillies: Dry chillies experienced a -11.27% YoY deflation in January 2025. This could be attributed to increased production, lower demand, and improved supply chain management.
- Brinjal: Brinjal, also known as eggplant, showed a -9.94% YoY deflation in January 2025. This may be due to increased production, lower demand, and improved supply chain management.
- LPG: LPG (Liquefied Petroleum Gas) prices experienced a -9.29% YoY deflation in January 2025. This could be attributed to increased production, lower demand, and improved supply chain management.
Conclusion
In conclusion, the data highlights the varying trends in inflation across different commodities in January 2025. While some items like coconut oil, potato, and coconut experienced significant inflation, others like jeera, ginger, and dry chillies showed deflation. Understanding these trends is crucial for businesses, policymakers, and consumers to make informed decisions about production, pricing, and consumption.
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