India's wholesale inflation hits nine-month high at 1.81%
What's the story
India's wholesale price-based inflation (WPI) rose to 1.81% in January, from 0.83% last month. The increase is mainly due to rising food prices and higher costs in the manufacturing sector. Core inflation also saw an uptick, climbing to 3.2%, up from the previous month's 2%. Food prices have seen a significant jump, with food inflation rising to 1.41%, compared to zero last month.
Price surge
Food prices spike, but potatoes and onions remain cheaper
The spike in food prices is largely attributed to a sharp rise in vegetable costs, which have surged by 6.78%. Meanwhile, the price growth for eggs, meat, and fish has also tripled to 3.66%, up from last month's 1.14%. Despite the overall increase in wholesale inflation, some kitchen staples like potatoes and onions have remained cheaper with potato inflation at -38.84% and onion prices at -33.42%.
Market fluctuations
Trends across different sectors
The All Commodities Index has gone up by 0.51%, while the Primary Articles Index has dipped by 0.15%. The Fuel and Power Index has also dropped by 1.62%, but the Manufactured Products Index has risen by 1.30%. These numbers indicate a mixed bag of trends across different sectors of the economy, with some witnessing price increases while others are experiencing declines.