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New Delhi13 hours ago
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The Wholesale Inflation based on Wholesale Price Index (WPI) was 1.22% in December 2020 and 3.52% in January 2020.
- Wholesale inflation has increased due to higher price of factory made goods
- Wholesale inflation for manufactured products stood at 5.13% in the previous month, from 4.24% in December 2020.
Wholesale inflation rose to 2.03% in January 2021, despite the decline in food prices. The wholesale inflation based on the Wholesale Price Index (WPI) in December 2020 was 1.22%. In January 2020, the rate was 3.52%.
According to the data released by the Ministry of Commerce and Industry, the wholesale price of food items declined last month, but due to the rise in the price of manufactured goods (factory made), the wholesale inflation rate has increased. Wholesale inflation for manufactured products stood at 5.13% in the previous month, as against 4.24% in December 2020. Wholesale inflation for manufactured goods in January 2020 was 0.59%.
Price of food items declined by 2.8%
The food inflation stood at (-) 2.8% in the previous month. This means that the price has decreased by 2.8% compared to a year ago. Inflation of food items was (-) 1.11% in December 2020 and 11.3% in January 2020. However, the food inflation stood at 0.26% in the previous month, as against 0.92% in December 2020. The food index consists of food articles from the primary article group, as well as food items from the manufactured products group. While the food articles segment consists of food articles of the primary article group.
Wholesale prices of vegetables declined by 20.82%
The average inflation rate of vegetables was (-) 20.82% in the previous month, while the inflation rate of potato was 22.04%. Fuel and power basket inflation was (-) 4.78%. In December 2020, the fuel and electricity basket inflation was (-) 8.72%. Any increase or fall in the price is compared to the same period a year earlier i.e. January 2020. Inflation for non-food articles, excluding food items, was 4.16% in January 2021.
Primary articles became 2.24% cheaper in January
The inflation rate for the most important items, ie, primary articles, was (-) 2.24% in January 2021 as compared to (-) 1.61% in December 2020. Primary articles account for 22.62% of the goods included in WPI. The inflation rate of this segment was 10.01% in January 2020, a year earlier.
Retail inflation has been 4.06% in January
Last week, the government also released retail inflation figures. The retail inflation based on the Retail Price Index (CPI) stood at 4.06% in January 2021. The Reserve Bank of India (RBI) sets the main interest rate based on the retail inflation rate in the monetary policy review. In the monetary policy review announced on 5 February, RBI did not change the main interest rate for the fourth consecutive time. The RBI also said that in the near future, inflation estimates are being seen as convenient.