Wholesale inflation eases to over two-year low of 3.85% in Jan

New Delhi, March 14

Wholesale price-based inflation declined to an over two-year low of 3.85% in January on easing prices of manufactured items, fuel and power, even though food articles remained expensive.

Lowest since January 2021

• This is the ninth straight month of decline in the rate of wholesale price-index (WPI) based inflation
• The WPI inflation was 4.73% in January and 13.43% in February, last year
• The 3.85% WPI inflation is the lowest since January 2021, when the rate of price rise on wholesale basis was 2.51%

“Decline in the rate of inflation in February, 2023 is primarily contributed by fall in prices of crude petroleum & natural gas, non-food articles, food products, minerals, computer, electronic & optical products, chemicals & chemical products, electrical equipment and motor vehicles, trailers & semi-trailers,” said a Commerce Ministry statement.

Retail inflation data released on Monday showed that it was at 6.44% in February from 6.52% in January. The big variance in wholesale and retail inflation rates is now presenting a dichotomy leading to worries that the trend could lead the economy into stagflation.

WPI inflation was 4.73% in January and 13.43% in February, last year. The 3.85% WPI inflation is the lowest since January 2021, when the rate of price rise on a wholesale basis was 2.51%.

Inflation in manufactured items softened but for food articles it rose to 3.81% in February, from 2.38% in January. Inflation in pulses was 2.59%, while in vegetables it was (-) 21.53%. Inflation in oil seeds was (-) 7.38% in February 2023. Fuel and power basket inflation eased to 14.82%, from 15.15% in the preceding month. In manufactured products, it was 1.94% against 2.99% in January.