As per the data released by the Commerce and Industry Ministry, the wholesale price inflation dropped after a period of 10 months to 2.76 per cent in January 2019. The government data showed that the slight increase in prices of manufactured goods as well as fuel products aided the reduction in the inflation rate.
The inflation rate in the month of December was 3.80 per cent. Experts at Reuters expected the inflation rate in the month of January to be 3.65 per cent but saw a reduction to 2.76 per cent.
The annual wholesale inflation rate is basically determined by the Wholesale Price Index (WPI). The prevalent prices of power and fuel, that constitute 13.15 per cent of the WPI, grew at a minimal 1.85 per cent as opposed to an increase at 8.38 per cent in the month of December.
The petrol price in December decreased by 1.57 per cent and the same decreased by 3.35 per cent in January.
The increase in prices of food articles, paddy, cereals, and minerals led to an increase in prices of primary articles from 2.28 per cent in December to 3.54 per cent in January. These prices constitute more than one-fifth of the WPI.
In terms of manufactured goods, which make up two-thirds of WPI, the prices have decreased from 3.59 per cent in December to 2.61 per cent in January.
Source: Money Control