India’s Wholesale Price Index (WPI) Moderates to 3-Month Low at 0.27% in Jan

India’s Wholesale Price Index (WPI) recorded a notable moderation, reaching a three-month low of 0.27% in January. This decline was attributed to reduced prices in both food articles and manufacturing products, as per data released by the Ministry of Commerce and Industry. Notably, this marks the third consecutive month of positive territory for wholesale inflation after experiencing deflation for a significant part of the previous fiscal year.

Deceleration in Food Prices

  • Inflation Slows: Inflation in food prices witnessed a notable slowdown, reaching a three-month low of 6.85% in January compared to 9.38% in December.
  • Leading Factors: Deceleration was observed in prices of various food items including paddy, cereals, pulses, vegetables, onion, fruit, and milk. Wheat and protein-rich items like eggs and meat also experienced contraction for the second consecutive month.

Continued Contraction in Manufacturing

  • Manufactured Products: Deflation persisted in prices of manufactured products for the eleventh consecutive month in January.
  • Key Sectors Affected: Notable contractions were observed in manufactured food products, vegetable and animal oil, textiles, paper, chemicals, metals, rubber, and steel.

Fuel Price Contraction

  • Continued Decline: Fuel prices experienced continued contraction for the ninth consecutive month in January.
  • Leading Factor: This decline was primarily driven by the ongoing contraction in prices of high-speed diesel, with petrol and cooking gas also witnessing slight deceleration during the month.

Implications on Consumer Price Index (CPI)

Impact: While the Reserve Bank of India typically monitors retail inflation for its monetary policy decisions, the moderation in WPI is expected to eventually influence the Consumer Price Index (CPI), albeit with a time lag.

 

 

 

Piyush Shukla

Recent Posts

Mumbai Indians Won The Womens Premier League 2025 Final

Mumbai Indians secured their second WPL title in three seasons, defeating Delhi Capitals by 8…

7 hours ago

Winners List of Women’s Premier League (2023 to 2025) Year Wise

The Women's Premier League kicks off again on February 23rd, with a rematch of last…

7 hours ago

Which City of France is Known as the City of Lights?

France is home to many beautiful and historic cities, each with its own unique charm.…

13 hours ago

What is the National Sport of Canada?

Canada is a country known for its love of sports. Many games are played across…

14 hours ago

India Tops Medal Tally at World Para Athletics Grand Prix 2025 in New Delhi

India finished on top of the medal tally at the World Para Athletics Grand Prix…

15 hours ago

Who is Known as the Queen of the Pop? Know About Her

Some people leave a lasting impact on the world with their talent, creativity and hard…

15 hours ago