WPI inflation in January eases to six month low of 2.84 per cent on cheaper food articles
15 February, 2018, 20:59
The wholesale price index (WPI Index) eased to a six-month low of 2.84 % in January mainly due to cheaper food articles.
In January, wholesale food prices rose 1.65% since the same month a year ago, down from a 2.91% rise in the previous month, the data showed. The previous low level was recorded in July at 1.88 per cent.
The index for Food Articles group declined by 2.4 percent to 140.6 from 144.1 for the previous month. This, in conjunction with the strengthening of the INR, may help to counteract the impact of factors such as rising crude oil prices on the overall WPI inflation for January 2018.
According to the government data released on Thursday, inflation on food articles slowed to 3 per cent in January, from 4.72 per cent in December 2017.
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According to the figures released by the Ministry of Commerce and Industry here, the price of pulses has declined by 30.43 per cent, wheat by 6.94 per cent and cereals by 1.98 per cent compared to prices in January a year ago.
Pulses witnessed deflation at 30.43 %, and the same for wheat and cereals was 6.94 % and 1.98 % respectively.
Fuel and power segment's inflation rate was 4.08 per cent. LPG with 19.89 per cent has been expensive compared a year ago. This is different from the consumer price index-based inflation, which reflects price changes in the retail market.
Meanwhile, inflation for November has been revised upwards to 4.02 per cent from the provisional estimate of 3.93 per cent released earlier.
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