January wholesale inflation quickens on fuel\, manufactured products

New Delhi: India’s wholesale inflation accelerated to 3.1% in January, driven up by fuel and power, and manufactured products, data released by the commerce and industry ministry showed on Friday.

Wholesale price inflation was 2.59% in December.

The annual inflation, based on monthly wholesale price index (WPI), was 2.76% in January 2019.

Inflation in fuel and power was 3.42% compared to a negative 1.46% in December 2019. In manufactured products, which have a 64.23% weight in the index, the rate was 0.34% in January from a negative 0.25% in the trailing month.

While inflation in food articles slowed to 11.5% from 13.24% in December and in onion to 293.3% from 455.8%, that in potato, was 87.8% in January vis-a-vis 45% in December.

Official data released Wednesday showed India's retail inflation firming up to a 68-month high in January at 7.59%.

In its monetary policy review last week, the RBI had maintained status quo on rates, as it revised the consumer inflation target upward to 6.5% for the January-March quarter. The next policy review is due in April.