Govt Data Shows WPI Inflation Eases To 12.96% In January

The wholesale price index (WPI) grew 13.56 per cent during December 2021, while the WPI for November last year was revised to 14.87 per cent from 14.23 per cent, the data revealed

New Delhi: The annual wholesale price-based inflation (WPI) eased marginally to 12.96 per cent in January compared to the December figure of 13.56 per cent, data released by the Ministry of Commerce & Industry on Monday showed.

The wholesale price index (WPI) grew 13.56 per cent during December 2021, while the WPI for November last year was revised to 14.87 per cent from 14.23 per cent, the data revealed.

According to the government release, “The high rate of inflation in January, 2022 is primarily due to rise in prices of mineral oils, crude petroleum and natural gas, basic metals, chemicals and chemical products, food articles etc. as compared the corresponding month of the previous year.”

WPI inflation has remained in double digits for the 10^th consecutive month beginning April 2021. Inflation in December 2021 was 13.56 per cent, while in January 2021, it was 2.51 per cent. However, the inflation in food articles, 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 per cent in January, marginally lower than 32.30 per cent in December.

Union Finance Minister Nirmala Sitharaman in the Lok Sabha on Friday said that the government’s inflation management is robust and it has handled the price rise during the Covid-19 crisis in a much more efficient manner than the UPA government did during the 2008-09 global financial crisis.

The Finance Minister said that the Indian economy suffered a loss of Rs 9.57 lakh crore during the pandemic while the loss to the economy during the 2008-09 global financial crisis was Rs 2.12 lakh crore.