January wholesale prices rise at a slower pace

Government data released on Wednesday revealed a deceleration in India's wholesale price index growth for January, primarily attributed to a decrease in food prices and a decline in manufactured product prices.

In January, the wholesale price index rose by 0.27% year-on-year, a notable slowdown compared to the 0.73% gain recorded in December. This figure also fell short of economists' expectations, who had anticipated a 0.53% increase, as per a Reuters poll. Food prices saw a moderated growth of 3.79% year-on-year in January, down from a 5.39% increase in December. Meanwhile, prices of manufactured products experienced a decline of 1.13%, in contrast to a 0.71% decrease in the previous month.

Fuel and power prices exhibited a decrease of 0.51% compared to a year earlier, marking a significant shift from the 2.41% drop observed in December. Additionally, prices of primary articles rose by 3.84%, a decrease from the 5.78% rise recorded a month earlier.

These trends follow recent government data indicating a three-month low in the country's annual retail inflation rate for January, underscoring ongoing fluctuations in India's economic landscape.