Wholesale Inflation Softened In January: WPI Inflation

Wholesale inflation softened in January, food prices continue to rise: WPI Inflation.

The government on Monday said that wholesale price-based inflation has softened for the second consecutive month in January, registering at 12.96 percent.

However, an increase in food prices has been observed. WPI inflation remains in double digits for the tenth consecutive month starting April 2021.

Inflation was 13.56 percent in December 2021, while it was 2.51 percent in January 2021. Inflation in food articles rose to 10.33 percent in January 2022 from 9.56 percent in December 2021.

Wholesale inflation softened in January: The price growth rate of vegetables stood at 38.45 percent against 31.56 percent in the previous month.

In the food articles category, the prices of pulses, cereals, and paddy showed a month-on-month increase.

While inflation in egg, meat, and fish was 9.85 percent and in potato and onion at (-)14.45 percent and (-)15.98 percent respectively.

The Ministry of Commerce and Industry said, “The higher rate of inflation in January 2022 was mainly due to the consumption of mineral oil, crude petroleum and natural gas, basic metals, chemicals, and chemical products, food products, etc.”

Inflation in manufactured goods stood at 9.42 percent in January as against 10.62 percent in the previous month.

The rate of price increase in the fuel and power sector was 32.27 percent in January, down from 32.30 percent in December.

Let us tell you that the Reserve Bank has kept the repo rate unchanged last week without changing it.

To support growth as well as manage inflationary pressures, the repo rate has been kept unchanged at 4 percent for the 10th time in a row. RBI lends short-term money to banks at the repo rate.

RBI and government are working in full coordination on crypto: Sitharaman.

Crypto is being discussed again as Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das deliberated on the issue.

Finance Minister Nirmala Sitharaman had announced in her budget speech that the RBI would launch a blockchain-based digital currency in the next financial year.

The government has also proposed a tax on digital assets