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India's wholesale inflation rose to 3.1% in January

Business Today logo Business Today 3 days ago

India's Wholesale Price Index (WPI) inflation rose to 3.1 per cent in January from 2.59 per cent in December, registering a 0.1 per cent increase. This is the highest inflation figure in last eight months.

a store filled with lots of fresh produce: India's wholesale inflation rose to 3.1% in January © Provided by Business Today India's wholesale inflation rose to 3.1% in January

The last time the wholsale inflation touched 3.1 per cent was in April 2019. Before that, it touched 3.46 per cent in December 2018. The wholesale inflation had risen to 2.76 per cent in January 2019.

According to the data released by the Ministry of Commerce and Industry on Friday, the wholesale inflation -- measured in terms of wholesale price index -- of food articles declined 1 per cent to 160.8 from 162.5 for December due to lower price of fruits and vegetables and tea (7 per cent), arhar (2 per cent), b**f and buffalo meat, pork and gram (1 per cent each).

As for non-food articles, prices declined 1.4 per cent to 132 from 134 for the previous month due to lower price of floriculture (19 per cent), castor seed and skins, raw (1 per cent each).

However, the price of items such as soyabean (5 per cent), linseed (3 per cent), safflower, raw rubber, among others moved up.

Also watch: January retail inflation at 7.59% hits a six-year high (Video by The Economic Times)

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Besides, the retail inflation, calculated on the basis of Consumer Price Index (CPI), inched upwards to 7.59 per cent during January, the National Statistics Office (NSO) data shows. This is the highest rate of inflation since May 2014, when it was 8.33 per cent.

This is the second month that inflation remained above the upper limit of 6 per cent set by Reserve Bank of India (RBI). In December 2019, consumer price inflation was pegged at 7.35 per cent. It kept on growing since January 2019, when it was recorded at 1.97 per cent.

In light of growing inflation and continuing economic slowdown, RBI's Monetary Policy Committee (MPC) had kept its repo rate unchanged at 5.15 per cent. The central bank follows retail inflation while deciding its policy rates.

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