Wholesale price inflation at 12.96% in January

Lowest rate in four months, but remains above 10% for the tenth straight month

India’s wholesale price inflation fell marginally to a four-month low of 12.96% in January from 13.56% in December 2021, the decline driven largely by a drop in manufactured products’ inflation below the 10% mark for the first time since last April.

Manufactured products inflation cooled from from 10.62% in December to 9.42% in January. Fuel and power inflation remained virtually unchanged from 32.30% in December to 32.27% in January, while price rise at the wholesale level hardened in January for primary articles and the food index. 

“Food inflation in January is now at a 24-month high of 9.6% from 9.2% in December, led by a sharp jump in prices of vegetables at 38.5% from 31.6% in December, and eggs, meat and fish (at 9.8% from 6.7% in December),” Bank of Baroda chief economist Madan Sabnavis pointed out.