Current Affairs - Economy - Discussion

Retail inflation in December 2024 stood at 5.22%, a four-month low, reflecting a positive trend in the country’s economic stability. This decline from November’s 5.48% was mainly due to easing food prices, with food inflation dropping from 9.04% to 8.39%. Rural and urban inflation rates also showed improvement, easing to 5.76% and 4.58%, respectively. The RBI uses such Consumer Price Index (CPI) data to guide its monetary policy, aiming to maintain inflation within a target range of 4% ±2%. These figures are significant indicators of the economy's health and help in planning fiscal policies.