The Wholesale Price Index (WPI)-based inflation declined to a 24-month low of 4.73 per cent in January 2023, government data showed on Tuesday. The decline in the rate of WPI inflation last month is mainly due to easing prices of manufactured items, fuel and power, among other items.
The food index inflation rose to 2.95 per cent in January from December’s 0.65 percent.
This is the eighth straight month of declining WPI-based inflation. It was 4.95 per cent in December 2022, 5.85 per cent in November last year, and 13.68 per cent in January 2022.
“Decline in the rate of inflation in January, 2023 is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products,” the Commerce and Industry Ministry said in a statement.
Inflation in pulses came in at 2.41 per cent, while in vegetables was (-) 26.48 per cent. Inflation in oil seeds was (-) 4.22 per cent last month.
Fuel and power basket inflation eased to 15.15 per cent, from 18.09 per cent in December last year. In Manufactured products it was 2.99 per cent in January 2023 as compared to 3.37 per cent in December last year.
The WPI data came a day after the Central government released the headline retail inflation numbers.
India’s annual retail inflation in January rose above the Reserve Bank of India’s upper threshold for the first time in three months, on higher food prices, vindicating last week’s hawkish monetary policy stance.
