The wholesale price index-based (WPI) inflation in January rose to 2.03 per cent from rise of 1.22 per cent in December. The WPI inflation was 3.52 per cent in January last year.
“The rate of inflation, based on monthly WPI, stood at (2.03 per cent) (provisional) for the month of January, 2021 (over January, 2020) as compared to 3.52 per cent during the corresponding month of the previous year,” a Ministry of Commerce and Industry statement on WPI said.
This is highest level of WPI inflation since February last year when it was 2.26 per cent.
While food articles saw softening in inflation in January, manufactured items witnessed hardening of prices, as per data released by the Commerce and Industry ministry.
Food inflation in January stood at (-) 2.8 percent, against (-) 1.11 percent in the previous month.
Inflation in vegetables and potatoes was (-) 20.82 per cent and 22.04 per cent during January, while in the fuel and power basket it was (-) 4.78 per cent.
In non-food articles, inflation was higher at 4.16 per cent during the month under review.
The Reserve Bank of India (RBI) in its monetary policy decision on February 5, kept interest rates unchanged for the fourth consecutive meeting and said that the near-term inflation outlook has turned favourable.
Meanwhile, retail inflation, based on the consumer price index, was at 4.06 per cent in January, data released last week showed.