Wholesale inflation rises to 2.03% in January from 1.22% in December 2020
Business | February 15, 2021 14:06 ISTThe wholesale price-based inflation rose to 2.03 percent in January 2021, even as food prices cooled.
The wholesale price-based inflation rose to 2.03 percent in January 2021, even as food prices cooled.
The Reserve Bank has lowered the retail inflation projection for the current quarter of this fiscal at 5.2 per cent, saying it has returned within the "tolerance band".
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Under the current dispensation, the RBI has been mandated by the government to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side.
After potato and onion, the price of edible oil has now gone up in the national capital due to a sharp increase in the cost of oilseeds. There has been a 53 per cent hike in the crude palm oil (CPO) prices in the domestic futures market, in the past six months due to a decline in palm oil production in Malaysia.
Consumers in the national capital are being adversely affected due to an increase in the price of vegetables. Meanwhile, the inflation has also reduced the sales made by vendors.
The wholesale price-based inflation declined 0.58 per cent in July, even as food items turned costlier. WPI inflation in June was at (-) 1.81 per cent, while for the month of May and April it was (-) 3.37 per cent and (-) 1.57 per cent respectively.
The Reserve Bank of India (RBI) on Thursday said inflation is expected to be at elevated levels during the second quarter, but may ease in the second half of the current fiscal year.
Inflation in food articles during June stood at 2.04 per cent, as against 1.13 per cent in May. In fuel and power basket, deflation stood at 13.60 per cent in June, against 19.83 per cent in the previous month.
Wholesale price index (WPI) inflation has declined by 3.21 per cent in May against a rise of 2.79 per cent in the year-ago period. The wholesale prices witnessed deflation due to sharp decline in prices of fuel and power, even as food articles turned expensive.
For Pakistans residents, fiscal year 2020 was the worst year as they witnessed highest inflation in the world forcing policy makers to increase interest rate, according to the State Bank of Pakistan (SBP).
India's annual inflation rate based on wholesale prices eased to 1 per cent in March from a rise of 2.26 per cent in February, official data showed on Wednesday. The fall in March has largely been on account of a sharp fall in food prices in the country. Food inflation in March fell to 4.91 per cent from 7.79 per cent in the previous month.
Retail inflation is on course to fall below 6 per cent in March and close to 5 per cent by August, helping the central bank navigate the coronavirus pandemic with lower interest rates, say SBI analysts.
Wholesale prices-based inflation accelerated to a 10-month high of 3.10 per cent in January mainly due to costlier food articles, particulary onion and potato, official data showed on Friday.
On a sequential basis, the expenses on manufactured products category, which constitute over 64 per cent of the WPI's total weightage, increased to 0.34 per cent from (-)0.25 per cent.
The data released shows that higher food prices, particularly of wheat and flour, pulses, sugar, jaggery and edible oil, have been the largest driver of overall inflation in January.
The classical economic theory of high inflation leading to the gross domestic product (GDP) growth will not be applicable to India even if the retail inflation has touched 7.35 per cent, since the price rise is led by highly volatile food and vegetables and is a short-term spike.
The retail inflation is on a 5-year high level of 7.4% as of December 2019 majorly driven by the inflation in the food price index, which also stood at 14.12%. A look at key statistics and what holds in future in terms of RBI's rate cut and probable inflation levels in the coming months.
People of India are more concerned about rising inflation and unemployment and not much about the Citizenship Amendment Act, IANS-CVOTER State of the Nation Poll 2020 has found.
The revised rates of telecom operators will add to the inflation rate in the country. Reserve Bank Governor Shaktikanta Das said on Thursday.
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