Delhi inflation at 1.8% as steep fuel-price fall offsets cost rise: Report

Officials said fuel-related costs fell 18.1 percent, the steepest drop among metros, while clothing rose just 1.4 percent and miscellaneous services 0.8 percent.

Amid households in the national capital facing food inflation and a dramatic slide in fuel costs, the latest “Price Indices 2024-25” report, released by the Delhi government’s economics and statistics department, paints a cautiously optimistic picture of price stability.

Despite pressure on staples, Delhi stayed below the national inflation average in most years, and consumption patterns indicate rising spending on services and lifestyle items. (HT Archive)

According to the report, for the year 2024-25, the consumer-price inflation for industrial workers (CPI-IW) in Delhi registered a modest rise of just 1.8%, which is among the lowest recorded in major metros. Delhi’s inflation rate remained below the national average in 2020, 2021, 2023 and 2024, but it was higher in 2022, as per the report.

Last year, Delhi clocked an inflation of 1.7%, compared to the national average of 3.8%.

The data shows that while essential items, such as food and beverages, saw a price rise, other categories offset the increase, given that fuel and light witnessed a steep decline. In the food and beverages category, Delhi recorded an inflation of 5.1% over the year, closely echoing the national trend.

“This has kept the cost of staples and everyday consumables under pressure for common households, especially as food remains a larger component of expenditure,” the report read.

Conversely, clothing and footwear, and miscellaneous items, which include medical services, education, transport, personal care and other essential services, saw minimal inflation. Clothing costs rose by merely 1.4%, while miscellaneous items increased by 0.8%.

Housing costs in Delhi increased moderately, by 2.8%, which was lower than many other metros. Delhi recorded the highest drop among metro cities, with fuel-related costs falling 18.1% in 2024-25.

“This sharp fall, significantly steeper than the all-India average decline of 11.9% in the same category, has offered welcome relief to households contending with rising electricity and cooking-fuel bills in recent years,” an official said.

On the one hand, the modest overall inflation and sharp fuel price drop may help contain monthly expenses. On the other hand, the 5.1% increase in food prices is also noteworthy as it is among the most indispensable part of any household’s budget.

The evolution in consumption pattern hints at structural changes in urban Delhi:; households are gradually spending more on services, lifestyle and non-staple items, officials said.