WPI Inflation Remains In Negative Zone.
After rising for the last four months, wholesale price index (WPI)-based inflation rate contracted to – 0.9 per cent in January on account of lower prices of food articles, especially vegetables and pulses. The WPI inflation rate, however, continued to remain in the deflationary zone for the fifteenth straight month. Wholesale inflation rate was -0.73 per cent in December and -0.95 per cent in January last year. The November WPI inflation has been revised to -2.04 per cent from the provisional estimate of – 1.99 per cent. Food inflation eased to 6.02 per cent in January from 8.17 per cent in December, with vegetables inflation at 12.52 per cent in January against 20.56 per cent a month ago. According to data released by commerce ministry, inflation in pulses moderated to 44.91 per cent in January from 55.64 per cent a month ago, while that of onions eased to 5.51 per cent from 25.98 per cent. The fall in wholesale prices inflation is in divergence with the rise in retail inflation for January. Consumer Price Index (combined)-based inflation rose to a 17-month high of 5.69 per cent in January.