Wholesale prices-based inflation rose to 3.1% in January, as against 2.59% in the previous month due to increase in prices of food articles like onion and potato. The annual inflation, based on monthly wholesale price index (WPI), was at 2.76% during the same month a year ago (January 2019). The rate of price rise for food articles stood at 11.51% during January as against 2.41% a month earlier, while for non-food articles it rose nearly three-fold to 7.8% from 2.32% in December, the data released by the Ministry of Commerce and Industry on Friday showed.
Among food articles, vegetable prices surged by 52.72% mainly on account of onion, which witnessed 293% jump in prices, followed by potato at 37.34%.
Earlier this week, retail inflation based on consumer price index (CPI), rose to a near six-year high of 7.59% in January, surpassing the Reserve Bank of India’s comfort range primarily on account of rising vegetable and food prices.
This is the highest rate of inflation since May 2014, when it was 8.33%. Last week, the RBI Monetary Policy Committee in its bi-monthly monetary policy review had kept its key interest rates unchanged 5.15% while maintaining an accommodative stance.