Wholesale inflation reduces to 0.27%, food inflation dips to 3.79%
India's Wholesale Price Index (WPI) inflation rate dipped to a three-month low of 0.27% in January 2024, according to the Office of Economic Advisor. This is a significant decrease from December 2023's rate of 0.73%. WPI takes into account the overall change in producer prices. It considers prices in the wholesale market and excludes indirect taxes, transport, and other charges. Food inflation also saw a decline, dropping from 5.39% in December 2023 to 3.79% in January 2024.
Largest decrease in inflation seen in manufactured products
Inflation rates for manufactured products experienced the most significant decrease at -1.13%, followed by fuel & power at -0.51%. However, primary sector products like minerals and crude petroleum still saw a positive inflation rate of 3.84%. Earlier this week, retail inflation also hit a three-month low of 5.1% in January, thanks to widespread moderation and a favorable base effect. In contrast, retail inflation was at 5.69% in December and 6.52% in January of the previous year.
Decrease in Food Index contributed to overall dip in inflation
The Office of Economic Advisor said, "The Food Index consisting of 'Food Articles' from the Primary Articles group and 'Food Product' from Manufactured Products group has decreased from 179.9 in December 2023 to 178.0 in January 2024." "Positive rate of inflation in January 2024 is primarily due to an increase in prices of food articles, machinery & equipment, other manufacturing, minerals, other transport equipment etc," the announcement said.
