India’s inflation rate decreased to a three-month low of 5.1% YoY in January, down from 5.69% in December. Food inflation, accounting for approximately half of the consumer price basket, eased to 8.30% from 9.53% in the previous month. Core inflation also declined to 3.61%, the lowest since 2019. These developments come as a relief to policymakers and support PM Modi’s administration, which has implemented measures like export restrictions on wheat, sugar, and rice, alongside extending lower edible oil import duties to control prices. Meanwhile, India’s factory output increased to 3.8% from 2.40% in November.