New Delhi: The wholesale price-based inflation eased for the eighth consecutive month to 4.73 percent in January on easing prices of manufactured items, fuel, and power. The wholesale price index (WPI) based inflation rate was 4.95 percent in December 2022 and 13.68 percent in January 2022. Inflation in food articles, however, rose to 2.38 percent in January, from (-) 1.25 percent in December 2022.


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"Decline in the rate of inflation in January 2023 is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products," the Commerce and Industry Ministry said on Tuesday. (Also Read: Residents of THIS Indian State Don't Pay Income Taxes! Why are Natives Exempted? - Check)


Inflation in pulses was 2.41 percent, while in vegetables was (-) 26.48 percent. Inflation in oil seeds was (-) 4.22 percent in January 2023. Fuel and power basket inflation eased to 15.15 percent, from 18.09 percent in December 2022. In Manufactured products, it was 2.99 percent, against 3.37 percent in December 2022. (Also Read: Retail Inflation Rises to 3-Month High of 6.52% in January)


The deceleration in WPI comes in contrast to the retail inflation data released on Monday which showed consumer price index (CPI) or retail inflation rose to 6.52 percent in January, from 5.72 percent in December 2022.


In its monetary policy review last week, the RBI hiked policy rates by 25 basis points to 6.50 percent saying core inflation still remains sticky. Consumer price index-based inflation had moved below the upper tolerance level of 6 percent during November-December 2022, driven by a strong decline in the prices of vegetables.


Assuming an average crude oil price (Indian basket) of USD 95 per barrel, RBI bettered the inflation projection for the current fiscal to 6.5 percent in 2022-23, from 6.8 percent predicted earlier. In the January-March quarter, the RBI expects retail inflation to average 5.7 percent.