File picture of activity at an open-air evening market in Ahmedabad. Image for representation
| Photo Credit: Reuters

India’s wholesale price inflation eased fractionally from 2.37% in December to 2.31% in January, with a deceleration in food inflation being almost offset by an uptick in manufactured costs’ price rise pace, government data released on Friday (February 14, 2025) showed.

While fuel and power inflation remained in deflationary territory, prices were 2.8% lower than a year ago, compared to a 3.8% drop recorded in December.

The Wholesale Food Index was up 7.5% in January, cooling a bit from the 8.9% rise in food prices recorded through November and December.

Manufactured products inflation rose from 2.14% in December to 2.51% in January.

On a month-on-month basis, wholesale markets’ prices were down 0.45% from December levels, led by a 2.3% decline in food prices. However, fuel and power costs were up 0.5% and manufactured products inched higher by 0.14%.

The Commerce and Industry Ministry attributed the positive rate of inflation in January, primarily to an increase in prices of manufactured food products, food articles, other manufacturing, non-food articles and manufacture of textiles, etc.

Food prices dearer

Among food articles, vegetables were 8.35% pricier in January, with potato (74.3%), onion (28.3%) and fruits (15.1%) still reporting double-digit spikes. Wheat prices were up 9.75%, while paddy and cereal prices rose 6.2% and 7.3%, respectively.

Pulses prices were 8.35% higher in January, compared to a 19% spike in the same month last year. But wholesale prices of vegetable and animal oils and fats (edible oils) shot up 33.1%, while manufactured food products were 10.4% steeper.

Within the fuel and power basket of the Wholesale Price Index, petrol and diesel prices were 3.6% lower than a year ago, but LPG prices rose 2.2%.