WPI inflation rises to 2.03% in January on costlier manufactured items, food prices ease

Representative Image (REUTERS)

The wholesale price-based inflation rose to 2.03 per cent in January, 2021, even as food prices cooled.

The WPI inflation was 1.22 percent in December, 2020 and 3.52 percent in January last year.

While food articles saw softening in inflation in January, manufactured items witnessed hardening of prices, as per data released by the Commerce and Industry ministry.

Food inflation in January stood at (-) 2.8 percent, against (-) 1.11 percent in the previous month.

Inflation in vegetables and potatoes was (-) 20.82 percent and 22.04 percent during January, while in the fuel and power basket it was (-) 4.78 percent.

In non-food articles inflation was higher at 4.16 percent during the month under review.

The Reserve Bank of India (RBI) in its monetary policy decision on February 5, kept interest rates unchanged for the fourth consecutive meeting and said that the near-term inflation outlook has turned favourable.

Meanwhile, retail inflation, based on the consumer price index, was at 4.06 percent in January, data released last week showed.