Wholesale inflation increases after retail inflation in January

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After December, now in January also, wholesale inflation has increased after retail inflation. According to government data, wholesale price index-based inflation has come down to 3.1 percent in January 2020. This is the highest in the last nine months. The rise in the prices of manufactured products has led to an increase in wholesale inflation. Inflation based on the wholesale price index was 2.76 percent in the same period of 2019. It was 2.59 percent in December last month. Manufactured products account for 64.23% in the wholesale price index.

Vegetable price up 52.72%

The price of vegetables increased by 52.72% in January. During this period, the price of onion rose by 293% and the price of potato by 37.34%. Carrot prices rose by 85%, cauliflower by 59% and cabbage by 43%. Papaya in fruits became costlier in January by 41%, pineapple 40%, and orange 39% compared to a year ago. Prices of eggs and meat and fish increased by 6.73%. The inflation of spices stood at 21.53%. The wholesale inflation rate for manufactured products stood at 7.05%.

Wholesale inflation rises for the third consecutive month

  • May                2.79%
  • June               2.02%
  • July                1.08%
  • Aug                 1.17%
  • September    0.33%
  • October         0.16%
  • November    0.58%
  • December     2.59%
  • January         3.1%

Retail inflation also at 68-month high

Earlier this week, the government released data on retail inflation. The retail inflation has reached 7.59% in January due to higher food and fuel prices. This is the highest in the last 68 months. Earlier it was 8.33% in May 2014. The economy has also suffered a double setback. On one hand, retail inflation reached record levels. On the other hand, industrial production declined. The index of industrial production (IIP) declined by 0.3% in December due to sluggishness in the manufacturing sector. The Central Statistics Department released the inflation and IIP figures on Wednesday.

Also Read: KANHAIYA KUMAR’S CONVOY ATTACKED IN BIHAR, ESCAPES UNINJURED

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