India's wholesale inflation eases to 2.31% in January
What's the story
India's wholesale inflation saw a marginal decline in January, falling to 2.31% from December's 2.37%, as per government data released today.
The change comes amid other changes in the nation's inflation landscape, including a decline in retail inflation and a rise in core inflation.
India's retail inflation fell to a five-month low of 4.31% in January, compared to 5.22% in December.
This was largely due to a decline in food prices, leading to an overall easing of retail prices.
Core increase
Core inflation sees rise in January
Unlike the trends in wholesale and retail inflation, India's core inflation witnessed a spike in January.
Both the services sector and non-food goods category saw an increase during this period.
Services inflation increased marginally from 3.5% to 3.6%, while core inflation excluding services, rose to 3.9%.
This paints a more complicated picture of India's economic climate beyond the headline figures of wholesale and retail inflation rates.
Monetary policy
RBI's rate cut decision backed by retail inflation data
The latest retail inflation data backed RBI's decision to cut rates after nearly five years.
The monetary policy committee slashed the policy rate by 25 basis points from 6.5% to 6.25%.
However, experts say that further action on the policy front may not be as forthcoming.
A more cautious US Federal Reserve and a weaker rupee may deter RBI from further cuts.