WPI inflation cools to 2-yr low of 4.7%

T he wholesale price index (WPI)based inflation rate for January 2023 fell to a two-year low at 4.73 percent. This was on the back of a higher base and easing of pricing pressure for fuel and manufactured products. In December 2022, wholesale price inflation stood at 4.95 per cent. In January 2021, it was at 2.51 per cent.

- SHIVA RAJORA

This is the fourth consecutive month that factory-gate inflation saw a single-digit print after remaining in double digits for 18 successive months.

Data released by the ministry of commerce and industry on Tuesday showed that inflation for manufactured items eased to 2.99 per cent in January from 3.37 per cent in December. It was led by softening price pressure in sectors like food, textiles, apparel, leather, paper, chemicals and pharmaceuticals, among others.

Food inflation which excludes manufactured food items - rose to 2.38 per cent in January from -1.25 per cent in December. This comes as prices for food items such as wheat (23.63 per cent) and cereals (15.46 per cent) continue to face double-digit inflation.

Higher milk prices (8.96 per cent) also contributed to higher food inflation.