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January's 2.31% wholesale inflation matches retail inflation.
Feb 16, 2025 04:03 pm
By
infodivyadelhi

Divya Delhi:  According to government data, the provisional annual inflation rate based on the All India Wholesale Price Index (WPI) is 2.31% for January 2025. The rise in prices of food and non-food commodities, textiles, and other manufacturing caused January's inflation. For nearly a year, wholesale inflation has stayed positive. Economists generally argue a little rise in wholesale inflation is good as it typically incentivizes goods manufacturers to produce more. The food index, which has a 24.38% weightage, had a wholesale inflation rate of 7.47% in  down from 8.89% in December. The government distributes index figures of wholesale prices on a monthly basis on the of every month (or the next working day). The index statistics are derived from institutional sources and chosen manufacturing units nationwide. Last April, wholesale inflation became negative. Likewise, early in COVID-19, as reported negative. Notably, the wholesale pricing index based inflation has been in double digits for 18 months in a row till. India's retail inflation was 4.3% in January, a five-month low and still within RBI's 2-6% target range. Food inflation has risen in the past few months, mostly due to rising vegetable, fruit, oil, and fat prices. It seems to have calmed. High food prices were a concern for Indian officials who wanted to sustainably lower retail inflation to 4%.The RBI had held the repo rate elevated at 6.5 per cent for nearly five years to keep inflation manageable. The repo rate is the rate of interest at which the RBI loans to other banks. The I has cut the repo rate by 25 bps to boost GDP and consumption.