India's January wholesale prices rise at a slower pace

In January, wholesale price rose 0.27% year-on-year, compared with a 0.73% gain in December

Reuters
Published : 15 Feb 2024, 02:51 AM
Updated : 15 Feb 2024, 02:51 AM

India's wholesale price index in January rose at a slower pace than in the previous month, mainly due to an easing of food prices and a sharper fall in prices of manufactured products, government data showed on Wednesday.

In January, wholesale price rose 0.27% year-on-year, compared with a 0.73% gain in December. The latest figures were also slower than economists' expectation of a 0.53% rise, according to a Reuters poll.

"Weakening of inflationary pressures has continued into January in wholesale prices," said Saugata Bhattacharya, an independent economist.

In January, food prices rose 3.79% year-on-year compared with an increase of 5.39% in December, while manufactured product prices fell 1.13% against a 0.71% decline the previous month.

Fuel and power prices fell 0.51% from a year earlier, compared with a 2.41% drop in December. Prices of primary articles were up 3.84% versus a rise of 5.78% a month earlier.

"Food prices have fallen due to seasonal winter effects on vegetables ... Fuel and manufacturing prices have weakened, in large part because of global prices softening due to weak demand from China," Bhattacharya said.

Last week, government data showed the country's annual retail inflation rate was at a three-month low in January.