In contrast to retail inflation, which spiked to a three-month high during the month due to the increase in prices of cereals, eggs, meat, fish, and milk and reversed the easing trend, wholesale price inflation eased to a nearly two year low in January as prices of some food items, manufactured goods, and fuel prices softened.
According to data issued by the commerce and industry ministry, inflation, as measured by the Wholesale Price Index (WPI), climbed an annual 4. 7% in January, down from the previous month's 4. 9%. According to a formal statement, the moderating prices of mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, and food goods are the main drivers of the decline in the rate of inflation.
In December, WPI inflation fell below the 5% threshold for the first time in 22 months, after remaining over double digits for 18 straight months and beginning to decline since October.
The data showed vegetable prices contracted by 26. 5% in the month while manufactured product rates rose nearly 3%, lower than last year’s 9. 5%. Fuel and light prices also moderated.