India's wholesale inflation declines

New Delhi: India's wholesale price inflation decelerated by 0.39 percent in January from an increase of 5.11 percent in the corresponding period of last fiscal, government data showed Monday.

India's wholesale price index (WPI) based inflation had fallen to 0.11 percent in December 2014. 

The rate of inflation based on WPI was nil (-0.17 percent) for November from a rise of 1.77 percent in the corresponding period of last fiscal.

Data furnished by the commerce and industry ministry attributed the slowdown in WPI= based inflation to decline in fuel and power prices.

Fuel and power inflation declined by 10.69 percent in January as compared to an increase of 9.82 percent in the corresponding period of last year.

The prices of liquefied petroleum gas (LPG) fell by 7.65 percent, petrol became cheaper by 17.08 percent and diesel prices came down by 10.41 percent.

Food inflation in the month under review stood at eight percent from 8.85 percent recorded in the corresponding month of 2014.

Prices of major food articles like wheat, onions, egg, fish and meat fell in the month under review.

According to the data, wheat prices decelerated by 1.63 percent from a rise of 6.79 percent year-on-year, while potatoes accelerated by 2.11 percent in January 2014 from a rise of 16 percent in the corresponding month of 2014.

Onions prices contracted 1.90 percent from an increase of 0.47 percent year-on-year. Egg, fish and meat inflation declined by 1.51 percent from a rise of 12.12 percent in January, 2014.

However, prices of vegetables grew by 19.74 percent in January year-on-year. Cereal prices were up 1.65 percent year-on-year. Rice was costlier by four percent. 

Manufactured products' inflation rose to 1.05 percent in the month under review from a rise of 2.96 percent in January, 2014.