WPI Inflation Hits 10-Month Low, Drops To 2.76% In January

Context

  • Inflation based mostly on wholesale prices fell to a 10-month low of 2.76 % in January over the earlier month on softening costs of fuel and a few food objects, in line with authorities knowledge launched on 14 feb 2019.

Key Facts

  • The Wholesale Value Index-based inflation stood at 3.Eight p.c in December 2018, and three.02 p.c in January 2018.
  • WPI inflation stood at 2.74 p.c in March 2018.
  • Inflation in kitchen necessities like potato, onion, fruits, and milk softened in January over the earlier month, the information revealed.
  • Nevertheless, the speed of worth rise within the meals basket, as a complete, rose to 2.34 p.c within the month beneath assessment compared to a deflation (-0.07 %) within the earlier month.
  • The retail inflation, launched earlier this week, too declined marginally to 2.05 p.c in January over the earlier month on continued decline in meals costs, together with greens and eggs.
  • The WPI knowledge additional revealed that wholesale-based worth inflation for “gas and energy” phase fell sharply to 1.85 % as in opposition to 8.38 % in December 2018, because of easing in costs of motor gas and LPG.
  • Also, there was lower in inflation in manufactured products basket in spite of larger in some objects like sugar and attire.
  • The Reserve Bank of India, which mainly elements in retail inflation-based Consumer Value Index, had reduce the important thing lending price by 0.25 p.c this month.
  • The decline in inflation could provide additional headroom to the central bank to chop repo rate within the coming months, specialists said.

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