January Headline inflation eased to 5.1 per cent

India's headline inflation moderated to 5.1 per cent in January 2024 as against 5.7 per cent in December 2023. The easing was primarily on the back of correction in food basket prices and a favourable base effect. At  3.5 per cent, core inflation continued with its declining trend. Within the food basket, while the prices of vegetables, fruits, pulses and spices witnessed a monthly downtrend, meat & fish and egg prices recorded a monthly uptrend. Although the inflation is expected to move in a positive trajectory, the Central Bank stays wary of headwinds in the form of geo-political risks and volatility in the food prices.