Factory inflation, as assessed by the wholesale pricing index (WPI), decreased to 4.73 percent in January from 4.95 percent in December, following a different trend from retail inflation. Retail inflation based on the Consumer Price Index was reported by the National Statistical Office (NSO) as being 6.52 percent in January as opposed to 5.72 percent in December. Mineral oils, chemicals and chemical products, textiles, crude oil and natural gas, textiles, and food products all contributed to the fall in the rate of inflation (WPI) in January.
The Commerce and Industry Ministry said in a statement. However, the inflation rate for food items increased to 2.38 percent in January from () 1.25 percent in December 2022. The inflation rate for pulses was 2.41%, for veggies it was 26.48%, and for oil seeds it was 4.22%. Fuel and electricity inflation decreased to 15.15 percent from 18.09 percent in December 2022, and manufacturing inflation was 2.99 percent compared to 3.37 percent in that same month.
According to Mohit Ralhan, CEO of TIW Capital, “The YoY CPI change data have been more unpredictable, while the negative trend in WPI has been continuing since May 2022. If we only consider the CPI index’s absolute level, it has been fluctuating between 175 and 177 since September 2022. Reading this data in conjunction with WPI suggests that inflation is expected to continue to trend lower during the ensuing quarters. We must exercise caution because the WPI composition’s food inflation increased significantly, which is a drawback.
