Wholesale Price Inflation Surges Amid Rising Costs

Wholesale price inflation in January rose to 1.81%, driven by increases in prices of food, non-food articles, and manufactured items. This rise follows inflation of 0.83% in December and 2.51% in January last year. The Reserve Bank of India maintains policy interest rates despite inflation concerns.

For the third consecutive month, wholesale price inflation experienced an upward push, reaching 1.81% in January. This rise, highlighted in government data released Monday, was spurred by increased costs in food, non-food articles, and manufactured goods on a monthly basis.

The Wholesale Price Index-based inflation marked a climb from 2.51% in January of the previous year and 0.83% in December. The industry ministry attributed the inflation primarily to price rises in basic metals, other manufacturing, food, and textiles.

In more detail, food articles saw inflation at 1.55% in January, recovering from a deflation of 0.43% in December. Meanwhile, retail inflation escalated to 2.75% last month. Despite the inflation pressures, the Reserve Bank of India has retained its key policy interest rates at 5.25%.

(With inputs from agencies.)