WPI Inflation: The Central Government is continuously trying to control inflation. Efforts are being made to increase availability in the local market by banning the export of pulses along with wheat, rice and onion. Its effect was seen in the month of January. Wholesale inflation declined to 0.27 percent in January. The main reason for this was the softening of food prices. In December 2023 it was 0.73 percent.
What was the condition of inflation in the year 2024?
Wholesale Price Index (WPI) based inflation remained below zero continuously from April to October. It was recorded at 0.39 percent in November. The Ministry of Commerce and Industry said in a statement on Wednesday that Wholesale Price Index (WPI) based inflation stood at 0.27 percent (provisional) in January. Wholesale inflation was 4.8 percent in January 2023. According to the data, the inflation rate of food items was 6.85 percent in January 2024 which was 9.38 percent in December 2023. The inflation rate of vegetables was 19.71 percent in January, which was 26.3 percent in December 2023. In January, wholesale inflation in pulses was 16.06 percent, while in fruits it was 1.01 percent.
Inflation had increased in December
Wholesale inflation increased to 0.73 percent in December. This increase was due to the sharp rise in the prices of food items, especially vegetables and pulses. Wholesale Price Index (WPI) based inflation remained below zero continuously from April to October. In November it was 0.26 percent. According to a statement issued by the Ministry of Commerce and Industry on Monday, the increase in prices of goods, machinery and equipment, manufacturing, transport other equipment and computers, electronic and optical products etc. was the reason for the increase in wholesale inflation in December 2023.
RBI also identified risks
The central bank will keep an eye on the performance of the new government to decide on its policy rate and liquidity strategies after the general elections. The RBI Governor has also identified risks in the financial system. And to overcome this, started meetings with the banks’ boards of directors and their management from May 2023. He had said that the central bank’s periodic inspections revealed lapses at the level of corporate governance, smart accounting activities to increase profits and new loans to repay old loans (loan evergreening).
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