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In January 2025, the WPI-based bulk inflation in foods is 5.88 percent, as in December 2024 against 8.47 percent.
Rajni Sinha, the chief economist of the care rating, says that food prices are likely to be easier in the coming months by seasonal improvement in prices.
According to the latest official data released on Friday, based on the wholesale price index (WPI), based on the wholesale price index (WPI), the prices of food vegetables in January are slightly reduced by 2.31 percent amid the fall in prices of vegetables in January. Done. WPI inflation was 2.37 percent in December 2024.
However, in January 2024, wholesale inflation was 0.33 percent.
After the latest retail inflation data released on Wednesday, the data comes that the Consumer Price Index (CPI)-Based inflation has reduced to a 5-month low of 4.31 percent in January to reduce the prices of food items. .
According to the latest WPI data, in January 2025, wholesale inflation in foods declined by 5.88 percent, as against 8.47 percent in December 2024. Inflation in vegetables decreased by 8.35 percent in December 2024 as compared to 28.65 percent.
In eggs, meat and fish category inflation fell to 3.56 percent against 5.43 percent last month.
Within vegetables, tomato prices declined by 18.9 percent, while inflation in potatoes stood at 74.28 percent, and onion increased by 28.33 percent in January.
Fuel and electricity category saw an deflation of 2.78 percent in January, against deflation of 3.79 percent in December. Of manufactured items, inflation was 2.51 percent in December 2024 compared to 2.14 percent.
ICRA senior economist Rahul Aggarwal said, “We extend WPI average at average at an average of 2.4 percent and grow up to 3 percent in FY2026, despite the hopes of cooling in prints for the food segment”.
According to Rajni Sinha, the main economist of care ratings, food prices are likely to be ease in the coming months by seasonal improvement in prices.
However, as far as global goods prices are concerned, there are headwinds. Their prices are getting strict amid growing uncertainty around the influence of American protectionist trade policies. This WPI will put pressure on a non-edible component one upwards.
Moving forward, Sinha said it is important to closely monitor geo -political development and global trade uncertainties, as these global goods can significantly affect markets and supply chains.
In addition, Rupee depreciation will make imports expensive by increasing the risk of imported inflation.
In the second half of the current financial year, the rupee has reduced by about 4 percent against the US dollar so far.
Earlier this month, RBI dropped the policy rate in a bid to 6.25 percent to 6.25 percent to promote consumption. The rate was cut after a gap of 5 years. RBI reduced the final rate in May 2022.
Monetary policy action in April 2025 depends on monetary policy factors, including the currency movement and liquidity in the system, Paras Jasrai, Senior Economic Analyst India Rating and Research said.
(With input from PTI)
