WPI inflation eases to 12.96% in January; food prices harden

New Delhi: The wholesale price-based inflation eased for the second consecutive month in January at 12.96 per cent, even though food prices hardened, the government said on Monday.

"The annual rate of inflation is 12.96% (Provisional) for the month of January, 2022 (over January, 2021), which is a continuous decline from 14.87% in November, 2021 and 13.56% in December, 2021. The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum & natural gas, basic metals, chemicals and chemical products, food articles etc as compared the corresponding month of the previous year," said Ministry of Commerce & Industry.

WPI inflation has remained in double digits for the tenth consecutive month beginning April 2021. Inflation in December 2021 was 13.56 per cent, while in January 2021, it was 2.51 per cent.

Inflation in food articles, however, spiked to a 10.33 per cent in January 2022 from 9.56 per cent in December 2021. Vegetable price rise rate jumped to 38.45 per cent, against 31.56 per cent in the previous month.

In the food articles category, pulses, cereals and paddy witnessed a month-on-month price rise, while inflation in egg, meat and fish stood at 9.85 per cent and in potato and onion at (-)14.45 and (-)15.98 per cent, respectively.

Inflation in manufactured items was 9.42 per cent in January, against 10.62 per cent in the previous month. In fuel and power basket, the rate of price rise was 32.27 in January, a tad lower than 32.30 per cent in December.

The provisional figures of Wholesale Price Index (WPI) are released on 14th of every month (or next working day) with a time lag of two weeks of the reference month and compiled with data received from institutional sources and selected manufacturing units across the country. After 10 weeks, the index is finalized and final figures are released and then frozen thereafter.