WPI inflation eases to 12.96% in Jan

The wholesale price-based inflation (WPI) eased to 12.96 per cent in January, which is a continuous decline from November’s 14.87 per cent and December’s 13.56 per cent. Although on a decline, the high rate of inflation in January is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals and chemical products, food articles, etc. compared to the corresponding month of the previous year, the Ministry of Commerce and Industry stated. 

Inflation in fuel and power increased by 3.90 per cent to 133.2 in January from 128.2 in December. Prices of electricity (15.94 per cent) and mineral oils (0.83 per cent) increased in January as compared to December. Coal prices remained unchanged. 

Manufactured products saw inflation increasing by 0.51 per cent to 137.1 in January from 136.4 in the month of December. Out of the 22 NIC two-digit groups for manufactured products, 18 witnessed an increase in prices. Basic metals, motor vehicles, trailers and semi- trailers, machinery and equipment, textiles, and chemicals and chemical products contributed to the increase, while manufacture of wood and of products of wood and cork; tobacco products; and pharmaceuticals, medicinal chemical and botanical products witnessed a decrease. Beverage manufacturing remained unchanged. 

“The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from Manufactured Products group have decreased from 169.0 in December, 2021 to 166.3 in January, 2022. The rate of inflation based on WPI Food Index increased marginally from 9.24 per cent in December, 2021 to 9.55 per cent in January, 2022,” stated the ministry.

The index for the Primary Articles group declined by 1.67 per cent to 165.0 in January from 167.8 in December, 2021. “Prices of Minerals (11.08 per cent) and Non-food Articles (0.37 per cent) increased in January, 2022 as compared to December, 2021. Prices of Food Articles (-2.61 per cent) and Crude Petroleum & Natural Gas (-5.11 per cent) declined in January, 2022 as compared to December, 2021,” the ministry said.

Also read: WPI inflation eases to 13.56% in December; food articles, veggies see price rise

Also read: WPI inflation hits record high of 14.23% in November