India’s wholesale price inflation decelerated by 0.39 percent in January from an increase of 5.11 percent in the corresponding period of last fiscal, government data showed Monday. India’s wholesale price index (WPI) based inflation had fallen to 0.11 percent in December 2014. The rate of inflation based on WPI was nil (-0.17 percent) for November from a rise of 1.77 percent in the corresponding period of last fiscal.
Data furnished by the commerce and industry ministry attributed the slowdown in WPI-based inflation to decline in fuel and power prices. Fuel and power inflation declined by 10.69 percent in January as compared to an increase of 9.82 percent in the corresponding period of last year. The prices of liquefied petroleum gas (LPG) fell by 7.65 percent, petrol became cheaper by 17.08 percent and diesel prices came down by 10.41 percent.
Food inflation in the month under review stood at eight percent from 8.85 percent recorded in the corresponding month of 2014. Prices of major food articles like wheat, onions, egg, fish and meat fell in the month under review. According to the data, wheat prices decelerated by 1.63 percent from a rise of 6.79 percent year-on-year, while potatoes accelerated by 2.11 percent in January 2014 from a rise of 16 percent in the corresponding month of 2014.
Onion prices contracted 1.90 percent from an increase of 0.47 percent year-on-year. Egg, fish and meat inflation declined by 1.51 percent from a rise of 12.12 percent in January, 2014. However, prices of vegetables grew by 19.74 percent in January year-on-year. Cereal prices were up 1.65 percent year-on-year. Rice was costlier by four percent.
Manufactured products’ inflation rose to 1.05 percent in the month under review from a rise of 2.96 percent in January, 2014 . The deceleration in WPI-based inflation comes on the back of retail inflation gaining momentum. The consumer price index (CPI) based inflation in January stood at 5.11 percent month-on-month.
Measured by the Central Statistical Office (CSO) on a new base year of 2012, the January inflation rose mainly due to higher food prices, including fruits and vegetables. The December retail inflation based on the Consumer Price Index (CPI), recalculated with the new base year, was at 4.28 percent. The CPI inflation in December was 5 percent with 2010 as the base year.
Food inflation in January was 6.13 percent due to costlier fruits, vegetable and cereals. The current WPI and CPI data will boost India Inc.’s hope for a rate cut from the apex bank in its next monetary policy announcement. The RBI has set a target for CPI inflation at 8 percent by January 2015 and 6 percent by January 2016. (IANS)