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

Tribune News Service

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.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

Join Whatsapp Channel of The Tribune for latest updates.

#inflation