Highlights

  • Wholesale prices in January eases to 0.27%
  • Inflation lower than economists' expectations
  • 0.33% month-on-month contraction in January

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India's wholesale inflation eases to 0.27% in January

Positive rate of inflation in January is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, minerals, other transport equipment

India's wholesale inflation eases to 0.27% in January

The wholesale prices in January increased by a mere 0.27% compared to the same period last year. However it eased compared to december when the index rose to 0.73% touching a 9-month high.

Wholesale price

The 0.27% gain in January is lower than economists' expectations of 0.53% as per a poll conducted by Reuters. The month-on-month change in WPI index for January witnessed a contraction of (-)0.33% from a contraction of (-)1.12% in the preceding month

Also Read: Retail inflation eases to 5.10% in January 2024

The WPI inflation which was in the negative territory for 7 months from April to October turned positive in November.

"Positive rate of inflation in January, 2024 is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, minerals, other transport equipment etc," the release said.

The retail inflation also eased to a three-month low of 5.1% in January mainly on account of lower food prices. Inflation based on the Consumer Price Index (CPI) was at 5.69% in December 2023 and 6.52% in January 2024. In August 2023, inflation touched a high of 6.83%

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