Wholesale inflation rises to 10-mth high of 1.81% in Jan

INDIA'S WHOLESALE PRICE inflation rose to a 10-month high of 1.81% year-on-year in January, up from 0.83% in December, primarily due to increases in prices of basic metals, other manufactured goods, nonfood and food articles and textiles, according to data released by the Ministry of Commerce and Industry on Monday.

- KULDEEP SINGH

The Wholesale Price Index (WPI) based inflation had increased from -1.0% in October to -0.13% in November, turned positive at 0.83% in December, and accelerated further to 1.81% in January. For context, WPI inflation was 2.51% in January 2025.

On the primary articles side (weight 22.62%), inflation rose to 2.21%. Food articles inflation returned to positive territory after nine consecutive months of deflation, standing at 1.55% yo-y in January compared to -0.43% in December. Vegetables inflation spiked to 6.78% Yo-Y after 11 months of deflation, though onions and potatoes remained in negative territory. Economists attribute vegetable price surge to supply shortfalls and favourable base effects.