News Brief
India's Wholesale Inflation Drops To 0.27 Per Cent In January
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India's wholesale price index-based inflation, a measure of how prices change for goods at the wholesale level, fell to 0.27 per cent in January, as per data from the Commerce Ministry.
This marks a decrease from 0.73 per cent recorded in December, as reported by Economic Times.
The month-on-month change in the WPI index for January witnessed a contraction of (-)0.33 per cent, compared to (-)1.12 per cent in the preceding month.
Explaining the factors contributing to the positive inflation rate in January, the release cited an increase in prices of food articles, machinery and equipment, manufacturing, minerals, and other transport equipment.
Inflation for food articles stood at 6.85 per cent in January.
Interestingly, the prices of crude oil and natural gas, as well as fuel and power, decreased slightly in January, contributing to the overall decrease in inflation.
The Reserve Bank of India (RBI), in its recent policy meeting had highlighted the risks posed by "large and repetitive food price shocks" to the ongoing disinflation trend.
However, Despite concerns over food price rises and uncertainties surrounding crude costs and domestic growth momentum, the RBI had maintained its inflation forecast for FY24 at 5.4 per cent.
Additionally, the government has been taking steps to control price rises, especially for essential items like perishable goods.
Finance Minister Nirmala Sitharaman, while presenting the Interim Budget 2024-25 in the Lok Sabha said “retail inflation is stable and has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities.”
