The wholesale price index (WPI)-based inflation eased to a three-month low of 0.27 per cent in January, mainly because of a moderation in food prices, including vegetables.

The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.39 per cent.

In January 2023, it was at 4.8 per cent and in December 2023 it was 0.73 per cent.
“The annual rate of inflation based on the All India Wholesale Price Index (WPI) number is 0.27 per cent (provisional) for the month of January, 2024 (over January, 2023),” the commerce and industry ministry said in a statement on Wednesday.

The previous low level of WPI inflation was recorded in October 2023, when it was (-) 0.26 per cent.

“The contraction was largely led by the WPI-food and core (manufactured non-food products) items, with the latter remaining in the deflationary zone for the eleventh straight month. Looking ahead, the early data for February 2024 depicts a mixed sequential trend in domestic prices of food items, and a softening in global commodity prices,” ICRA said

In January, food inflation declined to 6.85 per cent, from 9.38 per cent in December 2023.
Within food articles, inflation in vegetables eased to 19.71 per cent from 26.3 per cent in December. Inflation in potatoes was in the negative zone.

In the fuel and power segment, inflation was (-) 0.51 per cent in January, as against (-) 2.41 per cent in December 2023.

In manufactured products, inflation was (-) 1.13 per cent, as against (-) 0.71 per cent in the previous month.

Sonal Badhan, economist, Bank of Baroda said “Going ahead, volatility in international crude oil prices will remain a concern, owing to tensions in the Red Sea region.”