Consumer price inflation sharply down at 7.24% in January

01 March 2014

Consumer price inflation based on the consumer price index for industrial workers in the country declined by a steep 83 basis points to 7.24 per cent in January 2014 from 9.13 per cent in the previous month and 11.62 per cent during the corresponding month of the previous year.

Similarly, food inflation also stood lower at 8.94 per cent against 11.49 per cent of the previous month and 14.08 per cent during the corresponding month of the previous year, according to latest figures released by the labour bureau.

The all-India consumer price index for industrial workers (CPI-IW) for January 2014 declined by 2 points and pegged at 237, registering a decrease of 0.84 per cent between December and January compared with an increase of 0.91 per cent between the same two months a year ago.

The largest downward pressure to the change in the current index came from food group contributing -2.78 percentage points to the total change.

At item level, groundnut oil, onion, brinjal, cabbage, carrot, gourd, palak, peas, potato, tomato and other vegetable items, sugar etc are responsible for the decrease in index. However, this was compensated to some extent by the housing index and the prices of rice, wheat, fish, goat meat, poultry, cooking gas, electricity charges, petrol etc putting upward pressure on the index.     

Centre-wise, Bhilwara recorded the highest decline of 8 points each, followed by Kodarma (7 points), Bokaro and Surat (6 points each), Varanasi and Munger Jamalpur (5 points each). Among others, 4 points decrease was registered in 8 centres, 3 points in 13 centres, 2 points in 12 centres and 1 point each in 9 centres.

On the contrary, Amritsar and Quilon centres reported an increase of four points followed by Jharia (3 points). Among others, 2 points increase was observed in 6 centres and 1 point in 7 centres. Indices for the rest of the 14 centres remained stationary.

The indices of 38 centres were above all-India index levels and indices of other 39 centres are below national average. The index of Bhilwara centre remained at par with all-India index.

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