India’s Wholesale Inflation Eases To 2.3 pc In January Amid Falling Food Prices

New Delhi, Feb 15 (KNN) India's wholesale inflation showed a modest decline in January 2025, easing to 2.3 per cent from 2.4 per cent in December, according to data released by the Commerce and Industry Ministry on Friday. 

The slight moderation in the Wholesale Price Index (WPI) primarily reflects softening food prices and improved supply conditions.

The ministry attributed January's positive inflation rate to increased prices across several key sectors, including food product manufacturing, food articles, other manufacturing activities, non-food articles, and textile manufacturing. 

This development coincides with recent National Statistical Office data showing retail inflation, measured by the Consumer Price Index, reaching a five-month low in January, largely due to moderating food prices.

A detailed analysis of food articles reveals inflation in this category decreased to 5.9 per cent in January from 6 per cent in December. Notably, vegetable prices experienced significant relief, with inflation dropping to 8.4 per cent from the previous month's 28.7 per cent. 

While potato inflation showed some improvement, declining to 74.3 per cent from December's 93.2 per cent, onion prices saw an uptick with inflation rising to 28.3 per cent from 16.8 per cent.

In response to the evolving price environment, the Reserve Bank of India implemented its first interest rate reduction in nearly five years, cutting rates by 25 basis points earlier this month. 

This monetary policy decision was largely influenced by the observed easing of price pressures across various sectors.

(KNN Bureau)