|
|
|
'Lower WPI inflation in Jan due to favourable base, easing in fuel, power'
|
|
|
|
Top Stories |
 |
|
|
|
IANS | 14 Feb, 2023
The lower Wholesale Price Index (WPI) inflation last month is primarily
due to favourable base of last year and some easing in fuel, power and
manufactured products category, said the top economist in CARE Ratings.
India's WPI inflation for last month was 4.73 per cent, said the Ministry of Commerce and Industry on Tuesday.
Curiously
on Monday, the Indian government has said the retail inflation for last
month was 6.5 per cent, higher than the rate for December and November
2022.
Reacting to the WPI inflation number Rajani Sinha, Chief
Economist, CARE Ratings told IANS: "WPI inflation cooled further in
January primarily owing to a favourable base of last year and some
easing in fuel and power and manufactured products category."
She
said the moderation was, however, marginal as an uptick in food and
metal inflation limited the downside. The lower print for wholesale
inflation is despite a spike in the retail inflation, which breached
RBI's upper tolerance band in January.
"Two factors could explain
this divergence. First, WPI inflation has support from a favourable
base and second, manufacturing segment which contributes more than 60
per cent to the wholesale basket continued to witness moderation in
inflation.
Additionally, food categories such as cereals, milk
and pulses which were the main culprits for the spike seen in retail
inflation in January have lower weight in the WPI basket," Sinha said.
Sinha
expects WPI inflation to continue on the downward trend till the first
quarter of the next fiscal provided there are no unpleasant surprises
relating to global commodity prices.
"For the next financial year
(FY24), we expect WPI inflation to average around three per cent, lower
than the estimated 9.3 per cent for FY23. The critical aspect would be
to watch out for risk of resurgence in commodity prices on the back of
increased demand from China or any further global supply bottlenecks,"
Sinha remarked.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
 |
 |
COVID-19 has directly affected your business |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|