India's wholesale inflation eased to a three-month low of 0.27 percent in January, data released by the commerce ministry on February 14 showed. Wholesale Price Index (WPI) inflation was at 0.73 percent in December 2023 and 4.80 percent in January 2023.
At 0.27 percent, it is the third month in a row that wholesale inflation has printed in above zero.
WPI inflation remains sharply below CPI inflation due to softer non-food commodity prices and a favourable base effect. The statistics ministry said on February 12 that the headline retail inflation eased to a three-month low of 5.10 percent in January.
The wholesale food inflation cooled down to 3.79 percent last month compared to 5.39 percent in December 2023.
"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 commerce ministry said in the release.
In January, the price indices for all three major groups of the WPI came in at the following levels:
>> Primary articles price index was down at 3.84 percent versus 5.78 percent in December
>> Fuel and power price index was down at -0.51 percent compared to -2.41 percent in December
>> Manufactured products price index rose to -1.13 percent versus -0.71 in December
"In the near term, the deflationary trend in manufactured goods is likely to remain. Overall WPI inflation print is expected to be shaped by the trend in the food category and in the absence of any major surprises, should remain range bound between 0 percent-1.0 percent over the next two quarters," says Suman Chowdhury, Chief Economist and Head – Research, Acuité Ratings & Research
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