India Inflation January 2021


India: Inflation dips to the lowest level since September 2019 in January

February 12, 2021

Consumer prices dropped 0.64% over the previous month in January, a more moderate drop than the 1.01% seen in December. The figure was primarily due to a slower decrease prices for food and beverages. In addition, energy costs increased at a softer pace in January.

Inflation fell to 4.1% in January, from December’s 4.6%. January's figure represented the lowest inflation rate since September 2019. In addition, the trend pointed down, with annual average inflation coming in at 6.3% in January (December: 6.6%).

FocusEconomics Consensus Forecast panelists project consumer price inflation to average 4.6% in FY 2021, which ends in March 2022. The estimate is unchanged from last month’s forecast. In FY 2022, the panel projects consumer price inflation to average 4.3%. Meanwhile, our panel sees wholesale inflation averaging 3.6% in FY 2021, which is down 0.7 percentage points from last month’s report, and 2.8% in FY 2022.


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India Inflation Chart

India Inflation January 2021

Note: Annual and monthly variation of wholesale price index (WPI) and annual variation of consumer price index (CPI) in %.
Source: Ministry of Commerce and Industry and FocusEconomics calculations.

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