India’s wholesale price inflation seen lower at 0.27% in January

The annual rate of inflation based on the Wholesale Price Index (WPI) stood lower at 0.27 per cent in January 2024, against the 0.73 per cent inflation recorded in December 2023, provisional figures released by the commerce ministry showed.

During January 2024 prices of food articles, machinery and equipment, other manufacturing, minerals, other transport equipment etc showed an increase.

Inflation rate for the primary articles group, which has a weight of 22.62 per cent in the WPI stood at 3.84 per cent in January against 5.78 per cent in December 2023. Within the group, prices of minerals increased in January 2024 while prices of crude petroleum and natural gas declined. Prices of non-food also declined in January 2024 compared to December 2023.

Inflation rate for the fuel and power group (weight of 13.15 per cent in WPI) declined by 0.51 per cent in January 20224 against a decline of 2.41 per cent in December 2023. Within the group, prices of electricity increased in January 2024 while the prices of coal and mineral oils declined.

Inflation rate for the manufactured products group declined by 1.13 per cent in January 2024. Within the group, 9 sub-groups showed an increase in prices,12 showed a  decline in prices and one remained unchanged. 

Some of the important groups that showed increase in prices include machinery and equipment, textiles, beverages, motor vehicles, trailers and semi-trailers, rubber and  plastic products etc. Some of the groups that witnessed a decrease in prices include food products, basic metals, other items manufacturing items, chemicals and chemical products; other non-metallic mineral products etc.

Inflation rate for food articles group, including those from the primary articles group and the manufactured products group, declined in January 2024, leading to a decline in the rate of food inflation to 3.79 per cent in January 2024 against 5.39 per cent in December 2023.

The final inflation rate for November 2023 (Base 2011-12 = 100) based on the revised prices stood at 0.39 per cent.