India’s WPI Inflation Eases To 2.31 Per Cent In January As Food Prices Cool, But Rising Manufacturing Costs Put Upward Pressure

India’s wholesale price inflation (WPI) eased marginally to 2.31 per cent in January 2025, down from 2.37 per cent in December 2024, according to government data released on 14 February (Friday).

The decline was primarily driven by a slowdown in food inflation, though higher manufacturing costs nearly offset these gains.

While fuel and power inflation remained negative, the pace of deflation moderated slightly. Prices in this segment were 2.78 per cent lower year-on-year in January, compared to a 3.79 per cent drop in December 2024.

Meanwhile, food inflation cooled slightly to 7.47 per cent, down from 8.86 and 8.89 per cent recorded in November and December, respectively.

On the manufacturing front, manufactured product inflation increased from 2.14 per cent in December to 2.51 per cent in January, indicating rising input costs in the industrial sector.

On a sequential basis, wholesale prices fell 0.45 per cent compared to December levels.

However, fuel and power costs rose by 0.47 per cent, while manufactured product prices increased marginally by 0.14 per cent.

The Commerce and Industry Ministry attributed the continued positive WPI inflation to price increases in key segments like manufactured food products, textiles, non-food articles, and other manufacturing sectors.

Despite easing food inflation, key food items remain significantly costlier. Vegetables saw an 8.35 per cent increase in January, with potato prices surging 74.28 per cent, onion prices rising 28.33 per cent, and fruit prices up by 15.12 per cent.

Other staples also recorded notable increases, with wheat prices rising 9.75 per cent, cereals up by 7.33 per cent, and paddy prices climbing 6.22 per cent.

Meanwhile, edible oils and fats witnessed a steep rise of 33.10 per cent, while manufactured food products became 10.42 per cent more expensive.

Within the fuel and power segment, petrol and diesel prices remained 3.64 and 3.61 per cent lower year-on-year respectively, continuing their deflationary trend. However, LPG prices rose by 2.23 per cent, reflecting cost adjustments in the energy sector.

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