Inflation based on wholesale prices rose to 2.03 percent in January 2021, even after softening of food prices. The main reason for this is the rise in the price of manufactured goods. This was found in the latest figures. According to data from the Ministry of Commerce and Industry, the prices of food items moderated in January. However, the prices of manufactured goods increased. Wholesale (WPI) inflation was earlier 1.22 percent in December 2020 and 3.52 percent in January 2020.
According to the data, wholesale inflation in food items was down to 2.8 percent in January 2021. This was down to minus 1.11 percent in December 2020, a month earlier.
During this period, wholesale inflation of vegetables was at minus 20.82 percent and inflation of fuel and electricity was at minus 4.78 percent. However, wholesale inflation of potato was 22.04 percent during this period. Inflation in the non-food category was 4.16 percent during this period.
The Reserve Bank of India (RBI) in its monetary policy announcement on February 5 kept the interest rates unchanged for the fourth consecutive meeting. The Reserve Bank had announced that the inflation scenario has become favorable in the near future.
(This news has not been edited by the NDTV team. It is published directly from the Syndicate feed.)