Wholesale inflation eases to near 2-year low of 4.7%

NEW DELHI: Wholesale price inflation eased to a near twoyear low in January as prices of some food items, manufactured products and fuel prices softened in contrast to retail inflation, which surged to a three-month high during the month due to the increase in prices of cereals, eggs, meat, fish and milk and reversed the easing trend.

Data released by the commerce and industry ministry on Tuesday showed inflation, as measured by the Wholesale Price Index (WPI), rose an annual 4. 7% in January, lower than the previous month’s 4. 9%. Decline in the rate of inflation is primarily led by moderating prices of mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, and food products, according to an official statement.

WPI inflation had slipped below the 5% mark for the first time in 22 months in December after staying in double digits for 18 consecutive months and had started easing since October.

The data showed vegetable prices contracted by 26. 5%in the month while manufactured product rates rose nearly 3%, lower than last year’s 9. 5%. Fuel and light prices also moderated.

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