Retail inflation remains muted at 1.3% in December | Business News

Retail inflation in December recorded a modest rise to 1.3%, up from November's 0.7%, according to the latest figures released by the national statistics agency. This increase, while noticeable, still reflects a subdued inflationary environment, offering some relief to consumers and policymakers concerned about rising costs. The data suggests that while prices are creeping up, they remain relatively stable compared to historical standards. Several factors contributed to this slight uptick, including seasonal demand during the holiday period and minor increases in food and energy prices. However, the impact of these factors was tempered by continued supply chain improvements and stable wage growth, which helped keep overall inflation in check. Analysts suggest that the muted inflation rate indicates a balancing act between demand and supply, with no immediate pressures suggesting a return to higher inflation levels seen in previous years. Looking ahead, economists maintain a cautious outlook, noting that global economic uncertainties and potential policy changes could influence inflation trends in the coming months. For now, the central bank is likely to maintain its current monetary policy stance, as the inflation rate remains comfortably below the target range. This scenario allows consumers to enjoy relatively stable purchasing power, fostering a more predictable economic environment as the new year unfolds.

— Authored by Next24 Live