India's wholesale inflation rises to 1.81% in January on higher manufactured goods prices

Wholesale price inflation in India rose to 1.81% in January from 0.83% in December, driven mainly by higher prices of manufactured goods, government data showed on Monday.

The rise marks the highest annual wholesale inflation reading in three months.

The increase was led by costlier basic metals, textiles, food products and other manufactured items, according to data released by the Ministry of Commerce & Industry.

Prices of manufactured products, which carry the biggest weight in the wholesale price index (WPI), climbed 2.86% year-on-year in January, compared with a 1.82% rise in December.

Primary articles inflation rose to 2.21% from 0.21% a month earlier, while fuel and power prices continued to remain in deflationary territory, falling 4.01% year-on-year in January after a 2.31% decline in December.

On a month-on-month basis, wholesale prices increased 0.51% in January, unchanged from December.

Food prices, measured by the WPI food index, rose 1.41% annually in January, compared with flat growth in December, even as the index declined on a monthly basis due to softer food article prices.

In vegetables, inflation was 6.78% in January as against deflation of 3.50% in December.

Data showed that 19 of the 22 manufacturing sub-groups recorded higher prices in January, including basic metals, food products, textiles and electrical equipment. Pharmaceuticals, machinery and furniture were among the few categories that saw price declines.

Non-food articles category inflation spiked to 7.58% in January, against 2.95% in December.

Negative inflation, or deflation, continued in the fuel and power sectors, at 4.01% in January, as against 2.31% in December.

Wholesale inflation had stood at -0.13% in November, before turning positive in December.

The government said the next set of wholesale price data, for February, will be released on March 16.