Consumer price inflation hits a 5-year low of 3.17% in January

Consumer price inflation based on the consumer price index eased further to 3.17 per cent in January hitting the lowest in the past five years as retail prices fell for a sixth consecutive month.

Consumer price inflation had fallen to a 3-year low of 3.41 per cent in December on the back of a fall in the prices of perishable items like fruits and vegetables, and this has now been extended further as vegetable prices crashed by 15.62 per cent.

Price of pulses also declined by 6.62 per cent.

At 3.17 per cent India's January consumer price inflation is at its lowest since January 2012, provisional data released by the Central Statistics Office (CSO) showed.

The fall in inflation has been mainly on account of falling prices of vegetables and pulses with the arrival of the winter crop.

Food inflation in January stood at 0.53 per cent, down from 1.37 in December 2016 and 6.85 per cent in January last year.

Consumer price inflation for the rural areas stood at 3.36 per cent in January against 3.83 per cent in December 2016 and 5.69 per cent in January 2016.

Food price inflation for the rural areas stood at 1.07 per cent in January 2017 against 2.06 per cent in December 2016 and 6.93 per cent in January 2016.

Consumer price inflation for urban areas stood unchanged in January 2017 from 2.90 per cent in December 2016. It was 4.81 per cent in January 2016.

Food price inflation in urban areas (-)0.31 per cent in January 2017 against 0.15 per cent in December 20166.50 per cent in January 2016.

A good pulses crop also helped to cool inflation due to a demand contraction.