India’s retail inflation fell to a four-month low of 5.22% in December 2024 from 5.48% the previous month, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

This was driven by a drop in food prices from 9.04% in November to 8.4% in December.

Among key categories, vegetable inflation decreased to 26.56% from 29.33%, pulses inflation moderated to 3.83% from 5.41%, and fuel and light inflation improved to -1.39% from -1.83%.

However, December marks the fourth consecutive month of inflation exceeding 5%.

The Reserve Bank of India is tasked with keeping inflation at 4%, with a tolerance band between 2% and 6%. In October, the inflation rate crossed the tolerance cap of 6% for the first time since August 2023.

Overall, consumer prices for urban residents eased to 4.6% in December as opposed to 4.9% in November. Inflation for rural consumers was 5.8% in December, slightly lower than the 5.95% in the previous month.