The wholesale price index (WPI) based inflation decreased to 0.27% in January, marking the lowest rate in the past three months, according to data released by the Office of Economic Advisor on Wednesday. In December 2023, the WPI inflation stood at 0.73%. From April to October 2023, the WPI inflation remained in the negative territory, but it shifted to positive in November, registering at 0.39%.
The presence of inflation in January 2024 can be primarily attributed to rises in the prices of food articles, machinery & equipment, other manufacturing goods, minerals, other transportation equipment, etc.
The Food Index, comprising 'Food Articles' from the Primary Articles group and 'Food Product' from the Manufactured Products group, decreased from 179.9 in December 2023 to 178.0 in January 2024. Consequently, the inflation rate based on the WPI Food Index dropped from 5.39% in December 2023 to 3.79% in January 2024.
“The index for the Primary Articles declined by 1.04% to 181.0 (provisional) in January, 2024 from 182.9 (provisional) for the month of December, 2023. Prices of Minerals (0.93%) increased in January, 2024 as compared to December, 2023. Prices of Crude Petroleum & Natural Gas (-0.33%), Non-food Articles (-0.49%) and Food Articles (-1.36%) declined in January, 2024 as compared to December, 2023,” it states.
The most significant decline in inflation was observed in manufactured products (-1.13%), followed by fuel & power (-0.51%). Primary articles, encompassing minerals and crude petroleum, maintained positive inflation at 3.84%.
Earlier in the week, the data released from the Ministry of Statistics & Programme Implementation, noted India's retail inflation, as measured by the Consumer Price Index Numbers, decreased to a three-month low of 5.10% in January 2024 from 5.69% in the previous month.
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In urban India, the CPI (General) for the month of January declined to 4.92% compared to 5.46% in December, while in rural areas, while headline inflation in the rural areas stood at 5.34% in January, down from 5.93% in the prior month.
Additionally, it was mentioned that the retail inflation in January 2023 stood at 6.52%, with figures of 6.85% in rural areas and 6% in urban India. The Consumer Food Price Index (CFPI) indicated an inflation rate of 8.30% in January 2024, marking a decrease from 9.53% in December 2023. Food inflation experienced a decline in both rural and urban areas during January 2024.
The headline inflation decreased to an average of 5.5% between April and December 2023, down from 6.7% recorded during 2022-23.