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WPI inflation eases to 6-month low of 2.84% in Jan

Annual wholesale price inflation last month slowed to 2.84% from a year earlier, from a provisional 3.58% rise in December.

business Updated: Feb 15, 2018 13:58 IST
Press Trust of India, New Delhi
WPI,January WPI,wholesale inflation
Wholesale food prices in January rose 1.65% year-on-year, compared with a 2.91% rise a month earlier(AFP Photo)

Wholesale inflation for the month of January eased to a six-month low of 2.84% on cheaper food articles, even as vegetable prices continued to rule high.

Calculated on the basis of Wholesale Price Index (WPI), wholesale inflation was at 3.58% in December 2017 and 4.26% in January 2017.

WPI inflation at 2.84% in January is the lowest in six months. The previous lowest evel was recorded in July at 1.88%.

According to the government data released today, inflation on food articles slowed to 3% in January, from 4.72% in December 2017.

Inflation in vegetables witnessed some softening with annual inflation at 40.77% in January as against 56.46% in the previous month. Kitchen staple onion witnessed a whopping 193.89% price rise in January.

Pulses witnessed deflation at 30.43%, and the same for wheat and cereals was 6.94% and 1.98% respectively.

Prices of protein rich items eggs, meat and fish cooled by 0.37% while that of fruits rose 8.49% in January.

In the fuel and power segment, wholesale inflation rose to 4.08% in January, while it was 2.78% for manufactured items.

Data released earlier this week showed that retail inflation was at 5.07%. The Reserve Bank takes into account retail inflation while deciding on key policy rates.

In its policy review last week, the RBI had kept key interest rate unchanged and estimated retail inflation to be 5.1 pc in the January-March quarter. For April-September, RBI projected inflation to be in the range of 5.1-5.6%.

Meanwhile, inflation for November has been revised upwards to 4.02% from the provisional estimate of 3.93% released earlier.

First Published: Feb 15, 2018 12:26 IST