New Delhi, Feb. 16 -- A key downside risk to overall inflation in the country could stem from depreciating rupee, impacting the prices of imported goods, financial services firm Centrum Broking said in a report.

Rupee is trading at or around its all-time low. A depreciating rupee typically makes imported goods relatively costlier.

With steady progression in Rabi sowing and softening food prices, the food basket is projected to be a major factor contributing to lower inflation in fourth quarter of 2024-25.

India's retail inflation was at 4.3 per cent in January, hitting a five-month low and continuing to comfortably remain between RBI's 2-6 per cent target range.

This was mainly on account the drop in food prices; the fresh produce hel...